Professional Indemnity Insurance

At HISL Brokers Limited we know how important it is that, as a contractor or business owner, your operations are seen to be credible and trustworthy. It’s important that you can reinforce to your clients that you have the correct protocols in place to ensure that, whatever your trade or profession, the work you undertake does not place your clients’ operations, staff or customers at risk. However, sometimes things do go wrong, and professional indemnity (PI) insurance can give your clients and your partners’ additional peace of mind should a problem arise.

For contractors and business owners, it has never been more important to have a professional indemnity insurance policy in place. As a result of volatility in the economic climate, and an increasingly litigious society, it is likely that clients will be less hesitant to act in the event that something goes wrong. If your work, service or advice causes your client to suffer, be that personal injury financial or reputational loss, you need to ensure that you’re protected.

If you have heard about professional indemnity insurance but are unsure what it is or why you need it, read on to find out more.

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What is professional indemnity insurance?

PI insurance covers the intangible elements of the work that you complete for clients. For example, it can help to protect you in the event of financial loss as a result of faulty design, poor advice and even unintentional copyright infringement. In addition, in the event of a claim being made against you, a professional Indemnity insurance policy will also cover your business for legal defence fees, as well as compensation costs that you may owe due to damages.

What professional indemnity insurance covers

A typical professional indemnity insurance policy will provide cover for the following:


  • Professional negligence: If you give your client incorrect advice or make a mistake, this will provide the cover that you need.
  • Defamation: Your client could choose to sue you if you produce or support libelist statements about them.
  • Confidence breaches: Sharing sensitive information without having the permission to do so.
  • Copyright breaches: Infringing on copyrights, trademarks or intellectual property.
  • Lost or damaged documents: If you lose or damage documents that belong to your clients, they could decide to sue you.
  • Employee cover: If the actions of an employee cause a financial or reputational loss for your client, this will ensure your business is protected.
  • Legal defence costs: If your client takes you to court, this will cover the costs that you could incur.
  • Fraud and dishonesty: If your client considers that your business has acted in a fraudulent or dishonest way, this will provide protection.


These are just examples of some of the types of professional indemnity insurance cover that we can arrange at HISL Brokers Limited. As we know that no two businesses are the same, speak to us today to find out which policies will best meet your needs.

Do I need professional indemnity insurance?

Not every type of business or contractor requires PI insurance, and the requirement for cover usually depends on the industry you work in and the type of work that you do.

If the work you do involves providing advice or services to clients, such as a consultant, solicitor, architect, financial advisor, accountant or graphic designer, then it could be beneficial for you to consider having a professional indemnity policy in place.

In addition, depending on your profession, it may also be a requirement of your regulatory body that you have professional indemnity insurance in place too, so it is something that you should check.

How much professional indemnity insurance cover do I need?

The amount of cover that you need for your PI insurance policy depends on several things. Firstly, if it is a requirement of your business contract to have cover in place, this will usually specify the minimum amount that is needed. Secondly, it’s important to consider what the total value of your project is in terms of how much you’re being paid, and lastly it could also be worth asking your regulatory body for some advice.

How much does professional indemnity insurance cost?

At HISL Brokers Limited we understand that cost is important to your business, but it is crucial to ensure that you are properly protected in line with the risks your business faces. With that in mind, we will take the time to understand the specific needs of your business and recommend the amount of professional indemnity insurance cover that is best suited to you.

What else do I need to know about professional indemnity insurance?

It is also important to be aware that a professional indemnity insurance policy will also cover your business against bodily injury and property damage claims, in the event that these have occurred as a result of building designs being completed incorrectly and issues with the professional service you have delivered. For example, this could be in terms of property damage as a result of an architect providing incorrect structural calculations which cause a building to collapse.

How can I get professional indemnity insurance?

HISL Brokers Limited have a team of experienced professional indemnity insurance advisers ready to help you get the right protection in place for your business. 

We will take the time to understand the specific needs of your business and are committed to delivering a completely personalised service, ensuring that you have the best possible cover at the best possible price.

To find out how much peace of mind costs, contact Paul Kerner by calling: (0)20 7220 9020.

Claims examples

An acoustic consultant failed to adequately design the acoustics of a concert hall. As a result of the negligent design, when the concert hall was fully constructed, the patrons sitting at the rear of the auditorium could barely hear what was happening on the stage

An advertising agency designed brochures for an insurance broker client. When the brochures were printed, the agency realised that they had made a mistake in the spelling of the word “insurance”

A firm of solicitors represents their client in divorce proceedings. The client later alleges that the solicitors failed to act with reasonable skill and care in their claim for financial relief as a result of which she received significantly less than she was entitled to

An I.T. provider enters into a contractual agreement with a client to replace a data management system. For a variety of reasons, the client does not receive a system that met the requirements. The contract comes to an end with each party asserting that they have a right to pursue a damages claim

A media firm selects music for a television advert but uses a version of the music which it doesn’t have the rights for and faces action for financial redress. Similarly a publishing company involved in publishing educational textbooks is accused of infringing copyrights held by different photographers whose images are reproduced in the textbooks

An insurance broker’s clients own a restaurant that is destroyed by fire but the insurance company avoids the policy on the grounds of misrepresentation. The clients seek to recover their financial loss from their insurance broker claiming that it was they who failed to disclose the relevant facts to the insurer

A purchaser of property brought action against their estate agent, as property was detailed as having double glazing in estate agents’ particulars, but in actuality there was no double glazing. Claimant wants compensation for cost of installing double glazing

A letting agency was the subject of a claim as they did not obtain a guarantor when letting property. The tenant began to pay rent late then defaulted on several payments. The landlord pursued the letting agent for the outstanding rent, as the tenant disappeared

An engineering company provides aerodynamic calculations and CAD works in respect of the design and development of a new jet aircraft for a general aviation manufacturer. An employee of the engineering company leaves a folder containing these documents on the train during his journey to work. Extracts of these files appear in a free local paper and on the internet, forcing the manufacturer to publicly respond. The manufacturer in turn files a claim against the engineering company for commercial loss stemming from the leak of confidential information