What minimum PI cover do you need to win a contract?
Reviewed by Matthew Bartlett, Director, Apex Insurance Brokers Limited · Last reviewed 2026-08-05
When a tender or contract says you must carry a certain level of professional indemnity insurance, it is telling you the price of entry. Fall short and you can be disqualified before your work is even assessed. But "minimum PI cover" is not one number — it depends on who is asking and why. This page explains where those minimums come from and, more importantly, how to read the clause so your policy genuinely qualifies you.
Where the number actually comes from
Three different sources can set your minimum, and they often stack:
- The contract itself. A client, main contractor or framework will state a required limit in the insurance clause. This is the most common driver and is entirely at the buyer's discretion.
- Your regulator or professional body. If your profession is regulated, there is often a mandatory floor you must hold regardless of any contract.
- Public procurement rules. Public-sector buyers frequently specify PI levels in tender documents, scaled to the value and risk of the work.
You must satisfy the highest applicable figure. A contract asking for £1m does not override a regulator that requires more.
Typical regulatory minimums in the UK
Several UK bodies set mandatory PI requirements for their members. These are examples, not an exhaustive list — always check the current rules for your own profession:
- Solicitors (SRA). The Solicitors Regulation Authority's Minimum Terms and Conditions require a minimum limit of £2m per claim for most firms, rising to £3m for firms structured as an LLP or company.
- Chartered surveyors (RICS). RICS-regulated firms must hold PI on RICS-compliant terms, with the minimum limit tiered according to the firm's annual turnover.
- Architects. The Architects Registration Board (ARB) Code and RIBA guidance require members to hold "adequate and appropriate" PI cover for the work they do, rather than a single fixed figure.
- Insurance and financial intermediaries. Firms carrying out insurance distribution must hold PI at the minimum levels set out under the retained Insurance Distribution Directive requirements, expressed per claim and in the aggregate.
Accountants, mortgage brokers, healthcare professionals and others have their own schemes. If in doubt, your professional body publishes the current minimum in its membership rules.
Not sure whether your current limit clears the bar for a contract you want to bid on? We will read the clause with you.
Get a PI quote →How to read a PI clause line by line
The limit is only the headline. A policy at the right value can still fail to meet the clause if the detail is wrong. Look for five things:
| What the clause says | What to check |
|---|---|
| The limit | The stated amount, e.g. £1m, £2m or £5m. Your policy limit must meet or exceed it. |
| The basis | "Each and every claim" gives a fresh limit per claim; "in the aggregate" caps total payouts for the year. Aggregate cover at the same figure is weaker. |
| Duration / run-off | Many contracts require you to maintain cover for a set number of years after the work completes, because PI is claims-made. |
| Insurer standing | Some clauses require cover with an FCA-authorised or minimum-rated insurer, or on a UK-market wording. |
| Evidence | Expect to provide a certificate or broker letter confirming the limit and basis before contract award. |
"Each and every claim" versus "in the aggregate"
This is the detail people miss most often. A limit of £2m "any one claim" means each separate claim can draw up to £2m. A limit of £2m "in the aggregate" means £2m is the most the policy will pay across every claim in the whole policy year combined. If a contract demands £2m each and every claim and you hold £2m aggregate, you do not meet it — even though the number is identical. When a clause is silent, assume the buyer means each and every claim.
Run-off: the cover you need after the job ends
PI is written on a claims-made basis, meaning it responds to claims notified while the policy is live — not to when the work was done. A client may bring a claim years after completion. That is why contracts often require you to maintain PI at the agreed level for a period after the work finishes, commonly several years. If you let cover lapse, an old claim may find no policy to respond to. Factor this into any decision to stop trading, change insurer or reduce your limit.
Choosing a limit when you have a choice
Where no minimum is imposed, size your cover to your realistic exposure, not just your fee. Consider the value of the projects you work on, the potential cost of putting a mistake right, and the largest limit any of your likely clients might ask for. It is usually more efficient to carry a limit that clears the tenders you want to win than to increase cover contract by contract. A broker can map your typical contract requirements against a single limit that keeps you eligible. Talk to Apex about the right limit for your work.
Common questions
Is there a legal minimum PI amount for all businesses?
No. Unless your profession is regulated with a mandatory floor, there is no universal legal minimum. The figure comes from your contract, tender or regulator, and you must meet the highest that applies.
My contract wants £5m but my policy is £2m — can I still bid?
Not as it stands. You would need to increase your limit to at least the required amount before award. A broker can usually arrange a higher limit quickly so you do not miss the deadline. Get a revised PI quote.
Does a higher required limit cost a lot more?
Price is driven by your profession, turnover, claims history and the work you do, not the limit alone. Moving up a limit does not scale in a straight line, and a broker can show you the difference before you commit.
Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority (FRN 724952). This guide is general information, not advice on a specific policy or a substitute for your policy wording.