Reviewed by Matthew Bartlett, Director · Last reviewed 8 July 2026
Professional indemnity is the cover that responds when a client says the advice or work you gave them was defective and asks you to pay for the consequences. Whether you need it turns on three separate questions — is it required by your regulator, is it required by a contract you have signed, and is it commercially wise even where neither of the above applies. This entry works through each in turn and sets out the practical consequences of trading without it.
Most regulated professions in the UK require PI cover as a condition of authorisation to practise. The specifics vary by regulator, but the position is broadly the same — without cover in place you are not permitted to trade, and trading without it is a breach that sits alongside any negligence claim that follows.
Solicitors regulated by the SRA in England and Wales must hold cover meeting the SRA Minimum Terms and Conditions (SRA MTC) from a Participating Insurer. Solicitors in Scotland practise under the Master Policy administered under Law Society of Scotland (LSS) arrangements. Solicitors in Northern Ireland practise under Law Society of Northern Ireland (LSNI) Master Policy arrangements. Accountants regulated by ICAEW must comply with ICAEW Bye-law 61 which sets minimum PII cover linked to firm turnover. Chartered surveyors regulated by RICS must comply with RICS Rules of Conduct Rule 9 which sets minimum cover on turnover bands using the RICS-approved wording. Architects on the ARB register must meet ARB Standard 8 which requires adequate PI cover for the practice. Financial advisers regulated by the FCA must meet FCA IPRU-INV 13 which sets PII rules for personal investment firms. Insurance intermediaries regulated by the FCA must meet FCA MIPRU 3 which sets PII rules for the sector. Consulting engineers are increasingly required by their institution and by the Building Safety Act 2022 s.135 environment to hold PI cover appropriate to their exposure.
If any of these regulators applies to your firm, PI cover is not optional.
Even where no regulator requires cover, a contract usually will. Standard client engagement terms, procurement schedules, framework agreements, and public-sector tender responses routinely require the supplier to hold PI cover to a stated limit for the duration of the engagement and for a stated period after completion. Bank lending covenants for professional-services businesses can include PI cover requirements. Investor and shareholder agreements often require it.
The contractual requirement is not the regulator floor. Contracts frequently specify limits well above the regulator minimum, occasionally require named-insured status for the counterparty, sometimes require a specified insurer rating (A- or better on S&P, for example), and often require the cover to be maintained for a run-off period after the engagement ends. Reading the PI clause before signing is worth the ten minutes it takes.
Even where no regulator and no contract requires cover, unregulated professionals selling advice or services can face negligence claims. Consultants, coaches, trainers, marketers, developers and creative professionals routinely face client claims for defective advice, missed deadlines, defamatory copy, IP infringement, or software that does not do what the specification said it would.
The commercial case for PI cover in the unregulated space rests on three points. First, defence costs alone can be substantial — the cover meets those whether or not the claim is upheld. Second, the ability to say "we hold PI cover" is a common tender question in professional-services procurement, so the cover is part of the marketing armoury even where it is never claimed on. Third, going without cover exposes personal assets (as a sole trader) or the business balance sheet (as a company) to a claim that could be existential.
Trading without required cover has multiple layers of consequence. For the regulated practitioner it is a breach of the regulator's rules, which can lead to sanctions ranging from a warning to removal from the register. For the contracting party it is a breach of the client engagement that may allow the client to terminate, withhold payment or claim damages. For the individual it is exposure — when a claim arrives there is no policy to respond, no insurer defence team, and no fund to pay a settlement or judgment.
Late reinstatement of cover does not solve the problem. PI is claims-made, so a policy incepted after a circumstance is known does not respond to that circumstance — the underwriter will apply exclusions or decline the cover. The window to buy cover is before the exposure arises, not after.
Apex Insurance Brokers is authorised and regulated by the Financial Conduct Authority (firm reference 724952). We place PI cover for regulated professionals across solicitors, accountants, surveyors, architects, engineers, IT consultants, financial advisers and management consultants, and for unregulated consulting and advisory firms, with Lloyd's syndicates and specialist company markets. A named broker takes the initial conversation, works out which regulator or contract sets the floor, and shapes the placement around it. Ninety-five per cent of our clients renew with us the following year.
Not sure whether you need cover
Ten minutes with a named broker settles the question. A named broker reads every submission and comes back with terms within one working day.