Professional indemnity insurance
Digital Risks offers fast, effective and commitment-free PI cover for contractors and freelancers, startups and growing businesses.
Bespoke PI Cover
Businesses that provide advice, consultancy, or offer a professional service should consider professional indemnity (PI) insurance. If you handle data or intellectual property belonging to your clients, it's often a contractual requirement.
Your knowledge and expertise are your business. It’s what your clients pay for and what they rely on. They trust your advice to make big decisions.
But if the big decision goes wrong, you could have a big problem. Hero to villain in one fell swoop. If that happens, professional indemnity insurance can save the day.
From £7.70 per month
Covers legal costs
Benefits of professional indemnity insurance
Cover against mistakes
We all make mistakes from time to time - that's just life. But when you or your employees give bad advice or make a mistake it can end up costing your client, and you, big time! Professional Indemnity (PI) will cover you for the costs arising from negligence claims made against you.
Protect your reputation
For most of us, reputation is a key element of ongoing success. Our cover provides public relationship and crisis management, to help protect your brand and reputation when things go wrong.
Intellectual property infringement
With today's rate of content creation, your chances of accidentally breaching copyright and intellectual property (IP) are increasing. With our cover, you're not only covered for your mistakes, but we'll pay up to £25,000 in legal costs defending your business from others.
Who needs professional indemnity insurance?
Businesses that provide advice, consultancy, or offer a professional service should consider Professional Indemnity (PI) insurance. If you handle data or intellectual property belonging to your clients, it's often a contractual requirement. Learn more
Professional indemnity insurance guide
What is professional indemnity insurance?
Even the most experienced advisors can end up making a mistake, and when there's money and reputations involved, things can get nasty.
Professional indemnity cover is for situations where a client suffers (or claims to have suffered) financial loss as a result of your advice or service – even if you weren't at fault. It will cover any legal costs for fighting your case, plus any resulting compensation, as well as supporting with reputational and financial damage to your own business.
Not to be confused with public liability insurance, which covers you against accidents, injury or property damage to a member of the public, professional advisors and services must also consider PI insurance, otherwise known as indemnity insurance, meaning you're covered for financial and reputational damage caused.
Who is professional indemnity cover for?
Professional indemnity insurance (PI) is designed for businesses that offer a professional service, advice or consultancy - including small businesses.
That includes software developers, IT consultants, financial advisors, PR consultants and designers. Any business where you're selling your knowledge and expertise, or handling data or intellectual property on behalf of clients, PI offers valuable cover if anything goes wrong.
Plus, many of your clients are likely to ask for PI as a condition of working with them. So, as with some other business insurance policies, it could even help you close the deal!
What risks does PI cover you for?
However careful and dedicated you are, there are some days when the world conspires against you, resulting in mistakes or errors in your work. Client relationships can lose their shine without warning, projects can go pear-shaped and, even if you've done nothing wrong, you can face claims of breach of contract or professional negligence - particularly if the client loses money as a result.
If you're a software developer, you could be held liable if the software you've built falls over a few months later. Or as a communications consultant, you could accidentally leak confidential information.
Either way, if your actions lead to reputational or financial damage to the client, you'll not only have legal costs to pay, but potentially compensation and loss of earnings on top. Professional indemnity insurance can cover these risks, helping your business stay above water.
Things you can do
Nobody wants to face a PI claim, so there are various risk management practices that will reduce your exposure.
First off, invest in a lawyer to draw up watertight contracts and T&Cs for your client work, so both parties are clear on their professional duty, the scope of the work agreed, and any stipulations regarding what you can and can't be held liable for. This should be supported by thorough internal checks and procedures to ensure you are consistently meeting your responsibilities and maintaining a high quality of work.
And if you subcontract work, it is vital that your suppliers are also held accountable, through a contractual agreement, and a requirement to have PI. That way, if they make a mistake, you have the option to hold them liable if necessary.
What to watch out for
There are two different types of indemnity cover. The first is negligence-based and relevant to more traditional professions, such as solicitors or accountants.
The second covers civil liability and a much broader scope of risks. For media, tech and other service businesses, the second option is most likely the right one. Make sure you declare exactly what your business does to your insurer, as this will influence the specific policy details that you need. And be vigilant about updating them if anything changes, so your business insurance can be revised to reflect this.
If you're unsure about what level of cover you need, think about the worst possible scenario that could occur in the course of your work and the financial impact that would have. Your clients or industry body may specify a limit so check that, while also taking into account the potential cost of your own legal fees on top and the possibility of facing multiple claims at once.
Before purchasing, also check that your policy will cover you for liquidated damages, i.e. penalties specified in a client contract. So if you're found in breach of an agreement – to deliver the project by a certain deadline, for example – you won't need to foot the bill.
Another aspect to consider is where your clients are based. If they are abroad – particularly the US or Canada – you might need a more specialist cover, so check this before choosing a policy. And if you operate in the financial, medical or legal services sector, you should seek out specialist advice as you may require more tailored cover.
And finally, if disaster does strike, make sure that you notify your insurer as soon as possible after you become aware of a possible issue that might lead to a claim. This is often specified within the policy wording and if you don't, again you won't be covered.
- How much cover do I need?
- Can I change my cover or add policies?
- What to do if I have multiple business activities?
- How do I know what my policy covers?
- How do I cancel my policy?
- How long is a quote valid for?
- Is business insurance tax deductible?
- What do I do if my business type isn't on the list?
- Will I be covered straight away?
Other covers to consider
Covers your liability to employees for bodily injury or work-related sickness.
Covers your liability for failing to protect data, as well as penalties for not complying with data protection law.
Contents and equipment
Protects your property against theft, loss or damage.
Covers you for negligence in media content and advertising, including website, blogs and social media.
We're rated excellent by our customers
Excellent value at an affordable monthly cost. I have not needed use the services. But its good to know I have the insurance there to allow me to get on with my work.
James, J. Black Photography
Flexible. simple, easy, immediate. As a busy freelancer I need flexibility to potentially change the policy month by month - very handy and a feature I didn't find with other providers.
Tim, Graphic Design Freelancer
Excellent service, and really lovely people. Completely understanding of small or start up businesses, and a willingness/ability to be flexible. I'm very happy.
Lorna, Magic Penny Gifts
A super slick interface and all around great experience. Thumbs up Digital Risks! Having spoken to a number of "large" insurers, the pricing I received from Digital Risks was much more competitively priced for "like for like" cover. Highly recommended.
How we work
Fast and tailored experience
Arrange your business insurance in minutes. Get a quote and set up your cover online. Our web app will make your experience as quick and seamless as possible and help you to make an informed choice about the cover you need.
Flexible, subscription-style policies
Our monthly subscription model gives you ultimate flexibility, with the ability to change or cancel your cover at any time, and without any fees. Meaning you’re more accurately covered and only pay for what you need, when you need it.
Our superior tech enables us to deliver bespoke products that equip your business for all types of risks. Unlike other online insurance providers, our technology places risks individually so we can offer lower premiums for more comprehensive cover.
Exceptional customer service
Our experienced and knowledgeable team will look after you personally if you need support. We have a 24-hour claims helpline and aim to settle most small claims within 24-hours of receiving the necessary information.
Professional indemnity insurance FAQs
What is professional indemnity insurance and what does it cover?
Professional indemnity insurance, or PI for short, protects your business if a client claims to have suffered damage or financial loss as a result of your service or advice. This might be due to neglect, a misunderstanding or a genuine mistake, but whatever the situation, a legal dispute could be costly.
If that happens, professional indemnity insurance would cover the costs of your legal defence, any compensation costs, and some policies will pay for other incidental costs, like engaging a PR specialist to manage the situation post incident.
What kind of businesses do you provide cover for?
What are the requirements for professional indemnity insurance policy?
Do I need a professional indemnity certificate?
What isn’t covered by professional indemnity insurance?
What level of cover do I need and how much will it cost me?
How can I pay for my cover?
How do I get an invoice?
How can I make changes to my professional indemnity policy or make a claim?
What excess would I need to pay?
What kind of claims does professional indemnity cover?
What else do I need?
Still not sure?
Do I need to pay VAT on professional indemnity insurance?
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Small business workshops and training providers
While there’s a lot to be said for learning on the job, it certainly helps to have expert advice to fall back on, when starting a small business.
We're the British Insurance Awards 2018 Insurance Start-up Winner - recognised for our innovative range of covers, online customer experience and flexible subscription model, which make buying and managing insurance easy and accessible for businesses in the digital industries.
You're in safe hands
Authorised by the FCA
The FCA supervises UK financial services firms to protect consumers. We are directly authorised and regulated by the FCA and our Firm Reference Number is 656459. These details can be confirmed on the Financial Services Register at www.fca.org.uk or by calling the FCA on 0845 606 1234.
A-rated financial strength
Our insurance products are underwritten by security with Standard & Poor's A-rated financial strength or higher. This means the insurer has been independently assessed by the world’s leading credit rating provider and found to have a strong capacity to meet financial commitments (pay claims).
Protected by the FSCS
If you are a business with an annual turnover under £1m, charity with an annual income under £1m, or trust with net assets under £1m, then you will be entitled to compensation from the FSCS in the unlikely event we cannot meet our obligations. Full details and further information on the scheme are available at www.fscs.org.uk