Buying professional indemnity (PI) insurance can feel a bit like trying to choose a phone contract. Lots of options, lots of small print – and a nagging feeling the cheapest deal might not be the right one.
The good news? Once you understand where you can buy PI insurance, and the pros and cons that come with each, it’s much easier to feel confident you're making the right decision.
What actually matters when buying professional indemnity insurance?
Claims that you did something wrong (or didn't do something at all) can have a huge impact on your business. That's where professional indemnity insurance steps in to help.
But before we look at where to buy professional indemnity insurance, you should know the factors that could influence the route you plump for:
- Cost – what you’ll pay now for your policy (and what might cost extra later)
- Extent of cover – how well your policy fits with what your business does
- Help with claims – who's there to support you if something goes wrong.
You'll need to keep all three in mind when deciding where to buy your professional indemnity insurance from. So let's take a closer look at the different options, starting with…
Should you use a price comparison website to buy PI insurance?
Price comparison websites are often the first stop for people looking to buy insurance – and it’s easy to see why. A few clicks, a few questions, and bingo. You get a list of insurers with prices ranging from "cheapest" upwards.
So yes, using a price comparison site is quick and convenient. And it makes it easy to compare prices side-by-side.
But there are a few things to bear in mind:
- You’re only seeing a small slice of the market. Most comparison websites are set up to present quotes from the insurers they have a commercial relationship with. Some you'll know, some you won't. It's important to look beyond the price and do your research on each insurer before you spring for a PI policy.
- PI cover varies a lot. The policies you’re shown are usually based on the answers you give to a simple set of questions. That could mean they're not suitable for your particular business...which could leave you vulnerable if you have to claim.
- Aggregate vs ‘any one claim’. 'Any one claim' policies have one pot of money to cover all claims. Aggregate policies offer a fresh limit for each. 'Any one claim' policies are a safer bet if you’re worried about running into multiple claims over a year, and costs racking up.
- Help with your claim isn’t guaranteed. Buying PI through a price comparison website doesn’t mean you won’t get any help when there's a claim. But the extent to which you’re supported may vary.
Don't get us wrong. Comparison websites can work well for buying more generic types of insurance – like car or home insurance. In other words, simple products with simple risks and a much wider market to choose from.
But PI is a specialist type of insurance and much more complicated. Plus, PI's going to look very different depending on what you do...and small differences in the wording can make a big difference if you have to claim on your policy.
We’d say to research each policy listed carefully if you’re planning to buy PI from a comparison site.
Which takes us on to the next way to buy professional indemnity insurance...
Should you buy your professional indemnity insurance directly from the insurer?
You'd think buying your professional indemnity insurance direct from the insurer would be the quickest and easiest option. No quotes to compare, no middle man involved...
Except you'll probably find you're left doing a lot of the leg work on your own. Don't forget that:
- The options you’re shown are limited. When browsing an insurer’s website, bear in mind you’re seeing their policies only. Also, one insurer’s attitude to risk will differ from another’s. Because of that...
- You have to do lots of the comparison work yourself. In other words, deciding if that insurer’s PI covers all your risks or if you’re better off going elsewhere.
- Claims go straight to the insurer's claims department. This can be a bit daunting if you don’t know the ins and outs of how claims work. Frustrating, too, if you're directed to a large call centre with long wait times to get through. Plus a different person to speak to each time you call back.
That said, buying PI directly from the insurer works for some business owners. Especially those who know exactly what cover they need and are confident with navigating the complexities of the policy wording.
Some professional bodies, like those for architects, surveyors, engineers, and accountants, require members to buy PI with a very specific wording. They may also specify a minimum level of cover and even outline which insurers you can get your policy from.
But if it's help with finding the right PI policy and a guiding hand with claims you're after, you're probably better off with the third and final option...using a business insurance broker.
What are the benefits of buying professional indemnity insurance through a broker?
An insurance broker acts as your guide. They get to know what you do, match you with the right insurer and policy, and support you if you ever need to claim.
The benefits are:
- You get expert help. Brokers are insurance experts. They understand the PI market and how policies differ. They use their expertise to identify exactly the right policy for your needs.
- Cover that fits. Because brokers aren’t tied to any one insurer, they can pick out policies tailored to the kind of work you do and the particular risks involved.
- Claims support. A broker represents you, not the insurer. They can guide you through claims from start to finish, keeping you updated on any new developments, and arguing your case if needed. Whatever happens, you’re never alone.
- Regulated advice. FCA-regulated brokers have to stick to a strict set of rules and regs to ensure they’re always acting in your best interests as a customer. The best ones (like us) offer ‘advised sales’ too. Which means they're trusted by the FCA to advise you on all your insurance needs.
- Customer service. A good broker prioritises supporting customers human to human. Whether that’s by picking up the phone if you have a query, or making sure you deal with the same person when you need help with your policy.
While it could seem like you’re getting less choice with a broker, that’s kind of the point. Instead of showing you a lengthy list of policies that mostly don’t fit, they'll show you the ones that do – with the reasoning explained.
And if you want to talk it through with someone? You can just pick up the phone.
Why price isn't everything – especially with PI
Everyone likes a bargain. But with PI, how much your insurance costs only tells part of the story.
Some cheaper policies come with tighter limits, a higher excess, or extra costs later down the line. Doing a bit of homework upfront before you buy your PI policy can avoid any unpleasant surprises.
When you’re comparing professional indemnity insurance, always check:
- Whether cover is any one claim or in the aggregate.
- If retroactive cover is included in the price. It covers you for claims related to work you did in the past and is especially important for professions where claims can take months or even years to come out of the woodwork.
- The excess you'll have to pay if you claim.
- Whether there are admin fees for any changes you might want to make to your policy after you've bought it. These can stack up quickly if you’re not careful.
- If paying by monthly payments adds interest to the overall cost of your insurance.
Making sure your cover works for you
It’s surprising where and how often trouble can rear its head. That means you need a PI policy that covers all the different types of hot water your business could find itself in. But PI policies vary a lot.
Some professions need a very particular kind of wording. Others might need extra cover for specifics like deliverables in IT projects, or for certain marketing or advertising activities.
It’s also important to check where you’re covered to work, where your clients can be based, and which country’s laws apply. These are known as your policy’s geographical and jurisdictional limits.
So, always take time to compare professional indemnity insurance and individual PI policy wordings carefully, looking out for any limits and exclusions. Miss something crucial here, and you could find yourself facing a claim that isn’t covered.
Putting your mind at ease with claims
Claiming on your PI insurance is something we hope you’ll never have to get involved with. But the reality is, we’re becoming an ever more litigious society. And professional indemnity claims make up the second-biggest portion of all the claims we deal with (after portable equipment claims).
So what if the worst happens, and it's you that has to make a claim on your PI? This has everything to do with where you bought your policy from in the first place.
Bought via a broker? Then you’ll have a dedicated claims expert by your side – helping you respond, working with the insurer, feeding you updates, and keeping things moving along.
PI claims can be tricky and slow-moving. So having expert support and someone fighting your corner can make a big difference – both practically and emotionally.
Bought via another route? Then you may not be so lucky.
So...where's best to buy your professional indemnity insurance?
There's no single “right” answer for everyone. What matters most is choosing a route that leaves you confident you’re properly protected.
Just to recap, comparison sites suit more simple types of insurance. And buying directly with an insurer can work if you already know exactly what you need.
But buying your professional indemnity insurance through a broker is the way to go if you want expert help, tailored cover, and support if things go wrong. For the price of a single policy, you get the whole package, essentially.
If you’d like to know more, have a chat with our team on 0345 222 5391. We’ll keep things simple, friendly, and human – promise. Or take a look at this article which tells you more about where buying with a broker really helps.
Image edited using assets from iStock.
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