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 all your options for where and how to buy PI insurance, and the pros and cons with each, it’s much easier to feel you're making the right decision.
We'll go through what those are. But first...
What actually matters when buying professional indemnity insurance?
Claims you did something wrong (or didn't do something), and it's cost someone money, can impact your business hugely.
That's where professional indemnity insurance steps in to help. It puts any spurious accusations bang to rights while compensating any wrongs.
But before we look at where and how to buy professional indemnity insurance, you should know the factors that may influence which route you plump for:
- Cost – what you’ll pay now for your policy (and what might cost extra later)
- Suitability of cover – how well your policy fits what your business actually does
- Help with claims – who's there to support you if something goes wrong.
You'll need to keep all three of these factors in mind when deciding where to buy your professional indemnity insurance from. So let's take a closer look at the three 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 here:
- 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 won't be household names so it's important to look beyond the price and do your research.
- PI cover varies a lot. The policies you're shown are usually based on the answers to a simple set of questions. This could mean they're not suitable for your particular business...and that could cost you dearly if you have to claim.
- Aggregate vs ‘any one claim’. 'Any one claim' policies have a single pot of money for all claims. Meanwhile, aggregate policies offer a fresh limit for each. In other words, 'any one claim' policies are a far safer bet if you’re worried about running into multiple claims over a year.
- 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 depending on the product you choose.
Don't get us wrong. Comparison websites can work well when buying more generic types of insurance – like car or home insurance. In other words, simple products with simple risks and wider markets 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. Small difference in the wording can make a big difference when you're having to claim on your policy.
Bottom line is to research each policy and provider carefully if you’re tempted to buy your PI from a price comparison site.
Which brings us onto the second way to buy professional indemnity insurance...
Should you buy your professional indemnity insurance direct 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 getting in the way.
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. And because one insurer's view of risk differs from another's...
- You may have to do a lot of the comparison work yourself. For example, deciding if that particular insurer’s PI covers your risks adequately or if you’re better off going elsewhere.
- Claims go straight to the insurer's claims department. Not having a broker on your side can be daunting if you don’t know the ins and outs of how PI 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, or accountants, require their members to buy PI with a very specific wording. They may specify a minimum level of cover and even state which insurers you can buy your policy from.
But if it's help finding the right PI policy and a guiding hand during claims you're after, you'll be 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 faithful guide through the insurance maze. They get to know what you do, match you with the right insurer and policy for your risks, and support you if you ever need to claim.
There are multiple benefits to using a broker. Such as:
- You get expert help. Brokers are insurance experts. They understand the PI market and how policies differ. They're qualified to use their expertise to gauge what you do and point you to the right policy for your risks.
- 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. And if anything changes further down the line, they'll go through and review your cover with you.
- Claims support. A broker represents you, not the insurer. They'll guide you through the claims process from start to finish, keeping you updated on any new developments, and arguing your case if needed. Whatever the outcome, they're on your side.
- 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) can offer ‘advised sales’ too. Which means they're approved by the FCA to advise you on all your business insurance needs.
- Customer service. A good broker prioritises supporting customers human-to-human. Whether that’s by encouraging you to pick 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 who you can trust will listen and act in your best interests? You can just pick up the phone and call them.
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 the cover is any one claim or in the aggregate.
- If retroactive cover is included. 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 amount 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 ugly head. That means you need a PI policy that covers all the different types of hot water your business could find itself in. Because of that, PI policies vary a lot.
Some professions need a very particular kind of wording. Others might need extra cover for specific things 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? How you're supported has everything to do with where you bought your policy in the first place.
Bought via a broker? Then you’ll have a dedicated claims expert by your side – helping you respond, updating the insurer, giving 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 feeling 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 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.
Find out what buying your insurance with a broker really means. Or have a chat with our team on 0345 222 5391. We’ll keep things simple, friendly, and human when talking to you – promise.
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claimsinsurance brokersprofessional indemnity insuranceretroactive cover