You can usually choose between £50,000 and £5 million of professional indemnity insurance. Your regulator, professional body or client contracts may tell you the minimum amount you need. Think too about the scope of your projects and the potential compensation demand if something went wrong.
When you’re deciding how much professional indemnity insurance you need, it’s a good idea to check whether your professional body or regulator specifies a minimum level of cover. The Architects Registration Board (ARB) recommends at least £250,000 for its members, for example, while some businesses regulated by the Financial Conduct Authority (FCA) are required to hold more than £1 million of cover.
Also, find out whether your client contracts specify a particular level of professional indemnity insurance, and/or whether potential clients expect a certain level of cover from their suppliers.
Remember though, that these are minimum requirements: you may decide that your business needs a higher level of insurance. When you’re deciding how much to buy, think about the potential for things to go wrong with the work you do and the size of your contracts, and consider the possible cost of a compensation claim if you made a mistake in your work.
Simply Business offers minimum professional indemnity cover of £50,000 and a maximum of £5 million. Fill in a few details and choose your level of professional indemnity insurance and we’ll find you some quotes that fit.