Can You Get PI Insurance with a Claims History?

Yes, you can get professional indemnity insurance even if you've had a previous negligence claim. However, the application process will be more thorough, the premium will be significantly higher, and some insurers may decline you or offer restricted cover. The key is transparency and demonstrating what you've learned since the claim occurred.

How claims affect your insurability

Insurance companies view claims as evidence of risk. A single claim doesn't automatically disqualify you, but it significantly impacts how insurers perceive your business. They'll investigate:

• The nature of the error or omission that caused the claim
• Whether you were found at fault or if the claim was defended
• The amount claimed and amount paid out
• Whether the claim highlighted a systemic problem or a one-off mistake
• What changes you've made to prevent similar claims in future

A £3,000 claim settled quickly often has minimal impact on future premiums. A £150,000 claim resulting in a significant payout can make you uninsurable with some providers or result in cover restrictions (like per-claim limits or higher excess amounts).

Open claims vs. resolved claims

An unresolved claim is a major barrier to getting cover. Most insurers will not provide new PI cover while a claim against you is active. The reason is straightforward: they don't want to be liable for defending you against a claim under a new policy when you're already exposed under an old one (which might have coverage limits).

Once a claim is fully resolved—either settled, defended successfully, or judgment passed—you can apply for cover again. "Resolved" means the legal process is complete, not that you agreed with the outcome.

Premium impact and underwriting

Expect significant premium increases. A single modest claim (settled for under £10,000) might increase your renewal premium by 30–50%. A substantial claim (£50,000+) can double or triple your premium or result in outright decline.

The underwriting process will be slower and more invasive. Insurers will request:

• Full details of the claim, including court papers and settlement documents
• Your professional indemnity file relating to the claimed work
• Details of any corrective action or systems improvement since the claim
• Records of professional development or training undertaken
• References from clients or professional bodies

This underwriting can take 3–4 weeks or longer. Some insurers will decline after reviewing the claim details.

What you must disclose

You are legally required to disclose all previous claims, potential claims, and professional negligence complaints to any insurer. This includes:

• Actual claims (whether paid or defended)
• Complaints to professional bodies (Law Society, RIBA, etc.)
• Situations where a client has threatened legal action, even if never pursued
• Circumstances that might reasonably give rise to a claim (e.g., you know you missed a deadline and the client suffered loss)

Failing to disclose is misrepresentation. If you later make a claim under a new policy and the insurer discovers non-disclosure, they can refuse to pay and potentially rescind the entire policy. Your future insurability becomes nearly impossible.

Moving forward after a claim

To improve your chances of getting cover and keeping premiums manageable:

• Document every change you've made since the claim. If the claim resulted from inadequate procedures, show the new procedures.
• Get professional development certifications or additional training relevant to the area where the claim occurred.
• Request references from satisfied clients or your professional body.
• Consider joining a professional indemnity scheme or mutual with looser underwriting criteria (though often at higher base premiums).
• Work with a broker experienced in high-risk placements—they have relationships with specialist underwriters who accept claims history more readily.

Claims-made vs. occurring policies

Most UK PI policies are "claims-made," meaning they cover claims made during the policy period, regardless of when the work occurred. This is important for claims history: if you had a claim, your old insurer's policy should have covered it. When moving to a new insurer after a claim, check that your new policy includes a retroactive date covering the period when the error occurred (the claim itself will exclude from new cover under most policies, but the underlying work should be covered).

Can you appeal a decline?

If an insurer declines you outright, some will explain their reasoning and allow you to address their concerns. For example, if they decline due to lack of documented procedures, providing detailed procedures with supporting evidence might reverse the decision. However, most declines are final. Your remedy is to apply elsewhere (the application creates a claims record that other insurers will see, so future applications may also face similar underwriting issues).

Frequently asked questions