Buying PI · Checklist

Ten essential questions to ask when buying PI insurance

Reviewed by Matthew Bartlett, Director, Apex Insurance Brokers Limited (FCA FRN 724952) · Published 14 July 2026

This page lists the ten questions every UK professional firm should ask before binding a PI insurance policy.

The ten questions

  1. 1. What is the cover limit and is it per claim, aggregate, or both?
  2. 2. Are defence costs inside the limit or in addition?
  3. 3. What is the retro-date on this policy?
  4. 4. What excess applies, and is it per claim or per aggregation?
  5. 5. What aggregation clause applies, and to what triggers?
  6. 6. Are there specific activities excluded from cover?
  7. 7. What run-off cover would apply if the firm ceases trading?
  8. 8. What is the notification-of-circumstance provision?
  9. 9. Who is the insurer and what is their rating?
  10. 10. What broker commission is embedded in this quote?

Why each question matters

  1. Cover-limit structure — determines aggregation exposure.
  2. Defence costs — determines effective damages ceiling.
  3. Retro-date — determines coverage of prior work.
  4. Excess — determines the firm's per-claim liability floor.
  5. Aggregation — multiplies single-loss risk across multiple related events.
  6. Exclusions — may leave specific work uncovered.
  7. Run-off — determines tail protection.
  8. Notification — determines timing rules for coverage protection.
  9. Insurer — determines counterparty solvency and long-term reliability.
  10. Commission — Consumer Duty transparency.

Frequently asked

What's the first question I should ask?
What is the cover limit and is it per claim or aggregate. Everything else flows from that.
Do brokers typically answer all these questions?
A specialist broker answers all ten voluntarily in writing at quote. If they don't, ask specifically.
Should I get answers in writing?
Yes. Verbal answers don't hold up at claim time. Get it in the quote documentation.
What if the insurer won't share the wording before I sign?
Refuse to sign. The full wording should be available for review before binding, especially for material placements.
Are there sector-specific questions I should also ask?
Yes. Solicitors: qualifying insurer status. Architects: BSA 2022 handling. IFAs: DB-transfer treatment. Discuss with specialist broker for sector-specific detail.
Should I check the insurer's rating?
Yes for material placements. Standard & Poor's, Moody's, A.M. Best, or Lloyd's specific ratings. Prefer A- or better for long-term relationships.
What about the excess?
Yes always. Excess applies to every claim before insurer contributes. Higher excess = lower premium but more per-claim exposure.
Should I get multiple quotes?
Yes. Compare on all ten dimensions above, not just headline price.

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