PI Insurance Excess and Deductibles: How They Affect Your Premium

Every PI policy includes an excess—the amount you pay toward each claim before insurance covers the rest. Choosing the right excess balances lower premiums against out-of-pocket costs.

What Is Excess?

Excess is the amount you pay per claim. Once you pay it, insurer covers remaining costs up to policy limit.

Typical Excess Amounts

£250–£500 standard for small practices. £500–£1,000 common for mid-size. £1,000–£5,000 for larger firms.

How Excess Affects Premium

Higher excess = lower premium. Roughly: £500 saves 10–15%, £1,000 saves 20–30%, £2,500 saves 35–50%.

Aggregate vs Per-Claim Excess

Per-claim: pay excess for each claim. Aggregate: only pay once per year regardless of claim numbers.

Should You Choose Higher?

Yes if you have cash reserves, excellent claims history, are confident, and need low premiums. No if cash tight, high-claims industry, or previous claims.

"Too many save £200–£300 annually then face £1,000 when needed. Unless strong savings, stick with £250–£500."

— Association of Insurance Brokers

Frequently Asked Questions