Professional Indemnity (PI) Insurance is designed to protect your business against claims arising from professional advice, design, consultancy, or services that result in a financial loss for your client.

Keeping your business risk information up to date is essential to ensure your insurance cover remains adequate, your premium remains competitive, and your insurer fully understands and accepts your risk.

At DPI, we provide bespoke advice and service when arranging your insurance. If there’s anything you don’t understand or need help with, please don’t hesitate to contact us – we’re here to support you.

Below is a summary of the key areas we typically review at renewal for a Professional Indemnity Insurance policy and why they are important:

1. Business Description and Services Provided

It’s critical to provide a full and accurate description of your business activities, including:

• Specific services offered (e.g. design, consultancy, reports, audits, advice)
• Any new services introduced in the last 12 months
• Any changes to your industry focus or client base

Even minor changes in the nature of your work can affect the risk profile and must be disclosed to ensure you remain properly covered.

2. Turnover and Fee Income

We’ll review your annual turnover or professional fee income, including:

• Breakdown by activity (e.g. % of income from different services)
• Territorial spread of clients (UK, EU, USA, or worldwide) Some jurisdictions, such as the USA or Canada, carry significantly higher risk and are commonly excluded unless otherwise agreed with insurers
• Any projected changes for the coming year

Accurate turnover declarations help ensure correct premium rating and support the underwriting process.

3. Contractual Responsibilities and Limit of Indemnity

Many clients or regulators will specify minimum PI cover levels. We’ll confirm:

• Your current limit of indemnity (e.g. £500,000, £1 million, or higher)
• Whether the cover is on an “each claim” or aggregate basis
• Your retroactive date (i.e. how far back cover applies)

If you’ve signed new contracts or taken on larger or more complex projects, we may recommend adjusting your limits or scope of cover.

4. Claims or Circumstances

You are required to notify insurers of any:

• Actual claims made against your business
• Circumstances or complaints that could give rise to a future claim

We’ll review any notifications made in the last year and discuss how these may impact renewal. Transparency is essential, as failure to disclose potential claims can invalidate cover.

5. Risk Management and Internal Controls

Insurers often review your risk management practices, such as:

• Use of written contracts or terms of business
• Quality control and peer review processes
• Professional qualifications and staff training
• Record-keeping and version control

Strong internal systems can help prevent claims and may support favourable renewal terms.

6. Insurance General Acceptance – Adverse Financial History, Health & Safety Breaches and Criminal History

Commercial insurance is subject to an ongoing fair presentation of risk and insurance contracts are subject to certain standard general acceptance criteria. It is the ongoing responsibility of the policyholder to ensure any adverse financial history, health & safety breaches and criminal history are disclosed as these are considered material facts that directly impact the insurer’s ability to accurately assess risk. Non-disclosure or misrepresentation of such information can lead to serious consequences, including the voiding of the policy, rejection of claims and legal action. Full disclosure ensures transparency, allows insurers to offer suitable terms and helps maintain the integrity of the insurance contract.

Please Note:
This guide is a general overview and not exhaustive and should not be construed as bespoke advice or a personal recommendation. Your exact requirements may vary based on the nature of your services, regulatory obligations and risk exposure.