Who needs professional indemnity insurance?

published Jan 04, 2022
1 min read

Professional indemnity insurance is designed to protect businesses from any claims of faulty or inadequate services as a result of work they have done. The reasoning behind claims can vary from job to job but most commonly it is a claim against a mistake the business has made or if a client has suffered a financial loss as a result of its work. This insurance covers a company’s legal and compensation fees should a claim ever arise.

As a business owner, it’s important to know whether or not you will need professional indemnity insurance. To find out more about which professions need to be covered and the different kinds of claims involved, read on.

Which professions require professional indemnity insurance?

While this insurance is not a legal requirement for most industries, there are several professions that are required by regulators to hold professional indemnity insurance. These include financial advisors, solicitors, architects, chartered surveyors and healthcare professionals. Each of these jobs come with a high level of risk and must necessarily be protected in case things do not go according to plan.

What are the different types of claims made?


With stakes obviously very high when it comes to dealing with people’s health, it’s vital to be covered in the case of medical negligence claims. They can cover a variety of circumstances and payouts can be extremely high due to the potential severity of consequences for medical wrongdoing. With over 10,000 claims made to the NHS each year, you’ll need to be ready for the possibility of issues arising.


Financial negligence covers situations in which, for example, poor financial recommendations given by an advisor result in severe loss of a client’s money. If you’re in the financial sector, it’s beyond important that you have some protection against such worst-case scenarios.

Inadequate service

A common issue in the trades comes when a customer believes that the standard of work for which they have paid is not what they were promised or that you caused damage during the process. This can often result in them making a claim so you’ll want to ensure that your business is covered with professional indemnity insurance to avoid paying the compensation and legal fees yourself.

Accidents happen in all fields of work and they can never be completely eradicated – but what you can avoid is the cost of dealing with such mishaps. Find the best professional indemnity insurance for you and feel more secure completing your day-to-day responsibilities.