Professional Indemnity Insurance UK — Claims-Made Cover Explained

Claims-Made Basis

Why Professional Indemnity Works Differently

Unlike most insurance, professional indemnity is almost always sold on a "claims-made" basis, not an "occurrence" basis — and the difference genuinely matters.

Claims-made cover responds based on when a claim is made against you, not when the work was originally carried out
This means you need a live policy in place at the moment a claim is made — not just at the time you did the work
A "retroactive date" on your policy determines how far back your cover reaches for past work, even under a new policy or insurer
If you stop trading, retire, or let your policy lapse without buying run-off cover, past clients could bring a claim with no policy in place to respond
Switching insurers without checking the retroactive date can accidentally leave gaps in cover for work done under a previous policy

⚠️ The most common mistake: Assuming that because you had a policy in place when the work was done, you're automatically covered. Under claims-made cover, what matters is whether you have a live policy — with an appropriate retroactive date — at the point the claim is actually made, which can be years later.

Trade-Specific Risk

Run-Off Cover & Professional Body Minimums

Closing, retiring, or changing how your business operates doesn't end your exposure to past work — which is exactly what run-off cover exists for.

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Run-off cover

Protects against claims arising from work carried out before you stopped trading or changed insurer. Some professional bodies mandate a minimum run-off period; others leave it to individual judgement.

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Retroactive dates

Defines the earliest date your current policy will respond to a claim for. Losing continuous cover, or failing to negotiate an appropriate retroactive date with a new insurer, can leave historic work unprotected.

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Professional body minimums

Many regulated professions have their own minimum PI requirements set by their professional body or regulator — these vary significantly by profession and are often higher than what a business might otherwise choose to buy voluntarily.

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Limit structure

Policies may be sold on an "each-and-every-claim" basis (each claim gets the full limit) or an "aggregate" basis (all claims in a year share one limit) — the two are not equivalent, and some regulators specifically require each-and-every-claim cover.

💡 Check your specific requirement: If you're in a regulated profession — solicitor, accountant, financial adviser, architect, surveyor and others — your professional body typically sets a binding minimum PI requirement. Always confirm the current figure directly with your regulator, as these are reviewed periodically.

Choosing Cover

What to Look for in Professional Indemnity Cover

A few things worth checking before you buy, whichever UK insurer or broker you compare.

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Indemnity limit

Check the limit matches what your contracts, landlord or clients require — common tiers are £1m, £2m, £5m and £10m depending on trade and risk.

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Claims basis

Professional and liability covers are often "claims-made" — cover depends on holding a live policy when a claim is made, not just when the work happened.

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Exclusions

Read what's excluded, not just what's covered. Sub-contractor work, specific activities, or work carried out overseas are common gaps.

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FCA authorisation

Before buying, confirm any insurer or broker is authorised and regulated by the Financial Conduct Authority — check the register at register.fca.org.uk.

🤝 We're finalising partnerships with FCA-authorised UK insurers so you can compare real quotes here soon. Check back shortly, or get in touch if you'd like to be notified when comparisons go live.

FAQ

Frequently Asked Questions

It means your policy responds based on when a claim is made against you, not when the work that led to the claim was carried out. You need a live policy in place at the time the claim is made, which is why continuous cover and appropriate retroactive dates matter so much.

Run-off cover protects you against claims for work done before you stopped trading, retired, or changed business structure. Because professional indemnity is claims-made, without run-off cover a claim about old work could arise with no policy in place to respond to it.

It's the date from which your current policy will cover claims, regardless of when the claim itself is made. If you switch insurers, negotiating a retroactive date that matches your original start of trading (rather than the new policy's start date) avoids creating a gap in cover for older work.

Many regulated professions do, set by their professional body or regulator, and these vary significantly by profession. If you're regulated, check the current minimum directly with your professional body rather than relying on a general figure, as requirements are reviewed periodically.

Each-and-every-claim means each separate claim gets the full policy limit. Aggregate means all claims within the policy year share a single limit. Some regulators specifically require each-and-every-claim cover, so it's worth checking which basis your policy is sold on, not just the headline limit.

If you give advice, provide a professional service, or could be blamed for a client's financial loss, professional indemnity is generally relevant regardless of business size. Many client contracts and professional bodies require it even for sole practitioners.

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Professional Indemnity Insurance — Claims-Made, Explained Properly

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