How much is professional indemnity insurance?
Calculating PI cover
How much professional indemnity insurance will cost you depends on the cover you choose and the services you offer.
In some cases, the cost of professional indemnity insurance may also be affected by the minimum level of cover your industry’s regulatory body requires you to have before you start working.
How much does professional indemnity insurance cost?
Professional indemnity insurance with Superscript starts at £7.58 a month. This is the minimum price, which may go up depending on the services you offer.
Taking stock of the risks your business might face in the future will help you to decide the best level of cover to protect you from potential claims against your business. For example, unintentional mistakes made on the job, contract or intellectual property disputes.
It can help to start by identifying each risk your business faces, and then asking yourself four high-level questions:
- Your business: I am a freelance photographer.
- Risk: A client claims that the rights to a photograph I took are theirs.
- What insurance is needed to cover this risk? Professional indemnity insurance.
- How likely is this to happen to my business? I’ve experienced this 5 times in the past year.
- How much would this risk cost my business in lost revenue? Last time this happened, it cost my business over £x in customer compensation and legal fees.
- How much would cover for this risk cost? Professional indemnity insurance, including media liability starts at £7.70 a month.
- How much would it cost to make a claim? The excess would be £x, minimum.
Based on this simple assessment, you may decide that the price of professional indemnity insurance is worth it for a risk that could potentially cost your business thousands of pounds.
Professional indemnity insurance may be important to your business, but it might not be the only protection you need to have in place to cover potential risks to you. Find out more about how to get the right combination of covers to protect your work as a professional.
How do I find out the cost of professional indemnity insurance?
Every insurer will offer a different price for their PI cover. You can find out how much PI insurance will be if you took a policy out with us by starting a quote. Building a quote only takes a few minutes and is customised based on your business needs – this means your quote will be unique to you.
The cost of operating without professional indemnity insurance
While it may seem like another business cost that you could probably do without, buying PI insurance by monthly subscription makes a lot of business sense. Not only can you factor the monthly cost more easily into your outgoings (as opposed to an annual bill that's paid in one go) but the cost of compensation and legal fees will be much higher if a claim was made against you, so it's worth thinking about.
Our insurance 101 guides answer more of your professional indemnity questions.