Professional indemnity insurance (PI) — also called Errors & Omissions (E&O) or professional liability insurance — is available to any professional or business that provides services, advice, or specialized knowledge to clients.
Anyone whose work could lead to a financial loss for a client can and should get PI insurance.
✅ Freelancers
✅ Consultants
✅ Small businesses
✅ Large corporations
✅ Regulated professionals (lawyers, accountants, medical professionals)
✅ Creative professionals (designers, developers, marketers)
PI insurance isn’t limited to one industry — it’s about the type of risk, not the size of the business.
What Is PI Insurance?
Professional indemnity insurance protects professionals and businesses from claims related to:
Mistakes or errors in professional work
Failure to deliver a promised service
Omissions or negligence that cause financial loss to a client
It covers legal defense costs, settlements, and damages — protecting your business and your reputation.
| Feature | Professional Indemnity Insurance |
|---|
| Also known as | Errors & Omissions (E&O), professional liability insurance |
| Covers | Negligence, mistakes, service failures |
| Who can buy it | Individuals, businesses, corporations |
| Typical industries | Legal, finance, IT, design, construction, medical |
| Why it matters | Protects against lawsuits and financial losses |
Why PI Insurance Is Not Just for Big Companies
Many freelancers and small businesses mistakenly believe they don’t need PI insurance because they’re “too small to be sued.”
In reality, most PI claims come from small service providers.
A single client lawsuit can lead to legal costs in the tens of thousands of dollars — even if you’re not at fault.
Example:
A freelance web developer misses a key deadline, causing their client to lose a major launch deal. The client sues for $50,000. PI insurance would pay the defense costs and settlement (if applicable).
Who Can Get PI Insurance: Common Professions
1. Consultants and Advisors
Business consultants
Marketing consultants
HR consultants
Management advisors
Why they need PI: giving bad advice or making a miscalculation can cause client losses.
2. IT and Tech Professionals
Software developers
Web designers
IT support specialists
SaaS providers
Why they need PI: bugs, downtime, or misconfigurations can lead to huge financial damages.
3. Legal and Financial Professionals
Why they need PI: even small mistakes with legal or financial consequences can result in six-figure claims.
4. Medical and Healthcare Providers
Doctors
Dentists
Therapists
Medical clinics
Why they need PI: medical errors or professional negligence claims can be extremely costly.
(Note: in medical fields this coverage is often referred to as malpractice insurance, which is a form of PI.)
5. Creative and Marketing Professionals
Graphic designers
Copywriters
Videographers
Marketing agencies
Why they need PI: copyright issues, miscommunication with clients, or errors in campaigns can lead to claims.
6. Construction and Engineering
Architects
Civil engineers
Project managers
Surveyors
Why they need PI: miscalculations or faulty plans can result in structural problems and massive losses.
7. Education and Training Providers
Tutors
Training companies
Coaches and mentors
Why they need PI: if students or clients claim the training was misleading or harmful, PI insurance can cover legal costs.
Who Is Eligible for PI Insurance?
In most cases, anyone providing a professional service can apply for PI coverage.
Eligibility usually depends on:
Type of service you provide
Your annual revenue
Your claim history (if any)
Your experience and qualifications
The risk profile of your profession
| Eligibility Factor | Typical Requirement |
|---|
| Professional service | Must provide service, advice, or expertise |
| Business size | Freelancers to large corporations |
| Risk profile | Evaluated by insurer |
| Legal structure | Sole trader, LLC, partnership, corporation |
| Regulatory compliance | Required for some professions |
Who Is Required by Law to Have PI Insurance?
In some professions and regions, PI insurance isn’t just optional — it’s legally required or required by professional bodies.
Examples include:
Lawyers (many states require minimum PI coverage)
Accountants (regulated industries often require proof of PI)
Architects and engineers (construction contracts often demand PI)
Medical professionals (malpractice insurance)
Even when not required by law, clients often demand proof of PI coverage before signing contracts.
How Much PI Insurance Coverage Do You Need?
The amount of coverage depends on:
| Business Type | Recommended Coverage Limit |
|---|
| Freelancers & consultants | $250,000 – $500,000 |
| Small businesses | $500,000 – $1 million |
| Professional services (legal, IT) | $1 million – $2 million |
| High-risk industries | $2 million – $5 million+ |
Many insurers offer flexible limits, so you can scale coverage as your business grows.
How to Get PI Insurance
Assess your risk – What services could lead to financial loss for your clients?
Determine your coverage limit – Based on contracts and industry standards.
Compare carriers – Not all PI policies cover the same things.
Get multiple quotes – Rates can vary significantly.
Read exclusions carefully – Understand what’s not covered.
Work with an experienced agent – to tailor coverage to your specific needs.
How Much PI Insurance Costs
| Business Type | Average Annual Premium |
|---|
| Freelancer / solo consultant | $300 – $800 |
| Small business | $600 – $1,500 |
| Professional services firm | $1,200 – $3,000+ |
| High-risk industries | $3,000 – $10,000+ |
Factors affecting price:
Why Work With Toby Hansen Agency
Toby Hansen Agency searches nearly 100 carriers to find you the lowest price with the most coverage — whether you’re a solo consultant or a large firm.
With 30 years of experience, we help professionals:
Get PI insurance tailored to their industry
Understand exclusions and limits
Meet legal or client requirements
Get fast, affordable quotes
Final Thoughts
Who can get PI insurance?
✅ Any professional or business providing services, advice, or expertise.
From freelancers to global corporations, PI insurance offers crucial protection against lawsuits and financial losses.
Don’t wait for a claim to learn the hard way.
👉 Fill out the quote form below and let Toby Hansen Agency find the best PI coverage for your business at the lowest price.
