Editorial attribution: Professional Insurance UK Editorial Team
Editorial review: 28 June 2026
There is no reliable single average cost for professional indemnity insurance across the UK market. A low-risk sole trader buying a modest limit online is not comparable with a regulated firm, construction professional, financial adviser or consultancy accepting high contractual liability.
Practical answer: Selected providers currently publish lower-end or starting PI prices of roughly £6 to £8 a month for some risks. These are not market averages. They represent different samples, occupations, limits and conditions, and many businesses will pay more.
This page records the evidence available on 28 June 2026 and explains the main pricing factors. It does not provide a quote or predict what a particular business will pay.
Use the Professional Indemnity Insurance UK guide for the wider policy context and What Professional Indemnity Insurance Covers before comparing prices.
Current published price evidence
| Source | Published figure | Evidence conditions | What it does not show |
|---|---|---|---|
| AXA UK | Prices could start from £6 a month | 10% of AXA customers paid this or less between January and March 2026 | The average, median, occupation mix or price for a specific business |
| Simply Business | Quotes from £6.62 a month | Up to £1 million PI; 10% of customers paid £79.41 or less annually between 1 October 2025 and 31 March 2026; monthly-payment extras excluded | A whole-market average or a guarantee of that price |
| Hiscox UK | Quotes start from £8 a month | Provider states price varies by business and that there is no average PI cost | The price for a particular occupation, limit or claims history |
These figures are not directly comparable. They use different insurer panels, customer groups, cover options and reporting methods.
A responsible interpretation is that some lower-risk online buyers may find annual base premiums below or around £100 before optional covers or instalment costs. It is not responsible to call £6–£8 a month the “average UK premium”.
Why there is no single average
Professional indemnity risk is closely linked to what the business does and the loss it could cause.
A graphic designer working for small local clients may present a different exposure from:
- an architect designing a large development;
- a surveyor carrying out valuations;
- an accountant handling complex tax work;
- an IT consultant implementing critical systems;
- a financial-services firm subject to regulatory minimums;
- a consultant accepting uncapped liability to a multinational client.
Even within one occupation, premiums can differ because of turnover, contracts, past work, claims and limits.
Main factors affecting PI premiums
Occupation and services
Occupation is one of the strongest rating factors. Insurers consider:
- the technical complexity of the work;
- the chance that an error remains hidden for years;
- the potential financial consequence;
- historic claims experience for the profession;
- whether the work is regulated;
- whether the activity falls within an insurer’s appetite.
The description must include every material service. A broad label such as “consultant” may not reveal design, tax, financial, safety or technical work.
Turnover or fee income
Higher income can indicate more projects, clients and exposure. Some proposals ask for total turnover and a breakdown by service, client sector and territory.
Turnover is not the same as maximum possible loss. A small business can undertake one high-value project with a large liability.
Limit of indemnity
Higher limits generally cost more, but the relationship is not linear.
Pricing also depends on whether the limit is:
- any one claim;
- aggregate;
- inclusive or exclusive of defence costs;
- subject to sublimits;
- shared across several entities.
A client or professional body may set the minimum limit.
Excess
A higher excess means the insured retains more of each claim and can reduce the premium. The saving must be balanced against affordability.
Regulated schemes may restrict the excess. Some policies apply it to damages but not defence costs; others apply it more widely.
Clients and project values
Insurers may ask about:
- largest client by income;
- largest contract value;
- maximum project value;
- work for financial institutions, government or listed companies;
- dependency on one client;
- clients in high-risk industries.
The more severe the plausible client loss, the more the premium may increase.
Contract terms
Broad indemnities, uncapped liability, guarantees and responsibility for consequential loss can increase risk.
A well-drafted liability cap may help risk management, but insurers will assess whether it is enforceable, consistently used and proportionate.
Claims and circumstances
Past claims, complaints, errors, fee disputes or notified circumstances can affect:
- premium;
- excess;
- exclusions;
- limit;
- insurer willingness to quote.
A claim does not automatically make insurance unavailable, but incomplete disclosure can create a serious coverage issue.
Previous work and retroactive cover
Cover for earlier work increases the period of exposure. A business seeking full retroactive cover after operating uninsured for years may face additional questions or restrictions.
Experience and qualifications
Relevant experience, qualifications and professional membership may affect underwriting. They do not eliminate the risk.
New ventures may have no claims history but may also lack established controls and records.
Risk controls
Insurers may consider:
- written scopes and engagement terms;
- liability caps;
- peer review and sign-off;
- version control;
- conflict checks;
- complaints procedures;
- subcontractor due diligence;
- staff training;
- document retention;
- cyber security;
- quality-management systems.
Controls must be genuine and used in practice.
Geography and jurisdiction
Work in the United States, Canada or other territories can attract higher premiums or exclusions because of litigation and damages exposure.
The location of the client is not the only issue. Check where services are performed, where contracts are governed and where claims can be brought.
Employees and subcontractors
More people can mean more work and more opportunities for error. Insurers may ask about:
- staff numbers and experience;
- supervision;
- subcontracted services;
- whether subcontractors have their own PI;
- contractual recourse;
- offshore or overseas teams.
Market conditions and insurer appetite
Premiums can change because of insurer capacity, reinsurance, claims trends and sector-specific events. A profession may move from a competitive market to restricted terms even when an individual firm’s risk has not materially changed.
Illustrative annual budget ranges
PIUK does not publish invented “typical” bands. The evidence above supports only the following cautious planning approach:
- Lower-risk online entry point: some providers currently show lower-tail or starting prices around £72–£96 a year before instalment costs and additions.
- Individual quote required: the majority of businesses need a quote based on occupation, revenue, limit and history.
- Higher-risk or regulated work: premiums can be many times the online entry price and may require a specialist broker.
A budget based only on an advertised “from” figure can be materially inadequate.
Additional costs to check
Insurance Premium Tax
Most general insurance premiums are subject to the standard Insurance Premium Tax rate, currently 12%. Check whether the displayed quote includes IPT.
Monthly instalment charges
Paying monthly may cost more than paying annually. The Simply Business published figure expressly excludes extra monthly-payment costs.
Broker or administration fees
A broker may charge a fee, or the insurer may charge for mid-term changes, cancellation or documents. Fees should be disclosed before purchase.
Optional sections
The quote may add:
- public liability;
- employers’ liability;
- cyber insurance;
- legal expenses;
- office contents;
- directors’ and officers’ cover.
A bundle price cannot be compared fairly with standalone PI without separating the sections.
Run-off cover
Run-off may require a separate premium or multi-year arrangement when the business closes or stops a service.
Why renewal prices can move
A renewal premium can change even where turnover is stable. Insurers may react to the firm’s claims experience, changes in services, larger contracts, new exclusions, reinsurance costs or wider losses in the profession. A reduced premium can also reflect a narrower limit, higher excess or changed retroactive cover.
Compare the renewal schedule and endorsements with the expiring documents line by line. The guide to understanding business insurance documents explains how those records fit together. Record the reason for any material change rather than assuming it is a simple price adjustment.
How to compare quotations
Do not compare only the total premium.
Create a table covering:
| Item | Quote A | Quote B | Quote C |
|---|---|---|---|
| Insured activities | |||
| Insured entities | |||
| Limit basis | |||
| Defence costs | |||
| Excess | |||
| Retroactive date | |||
| Territorial limits | |||
| Jurisdiction limits | |||
| Key exclusions | |||
| Sublimits | |||
| Run-off options | |||
| IPT and fees | |||
| Annual and monthly total |
A lower premium may reflect a narrower activity description, higher excess, aggregate limit or exclusion.
Information needed for a quote
Prepare:
- legal and trading names;
- business start date;
- full service description;
- qualifications and experience;
- annual turnover or fee income;
- largest contracts and clients;
- geographic split;
- prior insurance and retroactive date;
- claims and circumstances;
- required limit and excess;
- professional-body requirements;
- subcontractor details;
- standard engagement terms.
The Business Insurance Review Checklist provides a wider evidence list.
Fair presentation and price
The Insurance Act 2015 fair-presentation duty applies to non-consumer insurance.
Accurate information can affect both premium and coverage. An insurer may price or decline the risk differently if it knows about:
- a new service;
- a major contract;
- overseas work;
- a complaint or error;
- a change in ownership;
- an unusually broad liability clause;
- prior uninsured work.
The duty is not satisfied by answering only the questions you consider important. A reasonable search and clear presentation may be required.
Can PI premiums be tax deductible?
HMRC guidance states that professional-indemnity premiums can be allowable business expenses for a self-employed person where the conditions are met. Tax treatment depends on the business and circumstances.
This is general information, not tax advice. Keep invoices and obtain professional advice where needed.
Common cost mistakes
Treating a “from” price as an expected quote
Starting prices usually represent only a portion of customers or narrow risks.
Buying the lowest limit without considering exposure
The cheapest limit may not meet a client contract or plausible claim.
Increasing the excess beyond available cash
A premium saving is not useful if the business cannot fund the excess.
Omitting previous work
A low quote with a recent retroactive date may leave earlier work uncovered.
Comparing bundles with standalone policies
One quote may include several covers, making the headline price misleading.
Failing to disclose changes
A new service or major client can change the risk and may require insurer agreement.
Frequently asked questions
What is the average PI insurance cost in the UK?
No reliable cross-market average is available for all occupations. Current provider evidence shows lower-end prices around £6–£8 a month for some risks, but many businesses pay more.
Why is my quote higher than the advertised price?
The advertised figure may apply only to a small proportion of customers, lower limits or lower-risk occupations. Your services, contracts, limits, history and previous work may differ.
Does a £1 million limit cost twice as much as £500,000?
Not necessarily. Pricing is not normally linear and depends on the entire risk.
Is monthly payment more expensive?
It can be. Check finance or instalment charges and compare the full annual total.
Will a higher excess reduce the premium?
It may, but the amount varies and the business must be able to pay the excess.
Does no claims history guarantee a low price?
No. Occupation, exposure, contracts, experience and insurer appetite still matter.
Should I use a specialist broker?
A specialist may be useful for regulated professions, high limits, complex contracts, claims, construction or unusual activities. PIUK does not recommend a specific provider.
Next step
Use current quotes based on identical limits and activities, then compare the complete wording, excess, defence-cost basis, retroactive date and exclusions. Treat advertised entry prices only as context.