Cover comparison · 2026
Professional Indemnity vs Employer's Liability Insurance
Professional Indemnity and Employer's Liability Insurance are often confused because they sit close together — but they protect against different things. This side-by-side shows exactly what each covers, what it excludes, the typical UK cost, and how to decide which one (or both) you actually need.
At a glance
Professional Indemnity
Protects professionals and businesses against claims for financial loss suffered by clients as a result of negligent advice, errors, or omissions.
Typical UK premium: £150–£2,000/yr
Available in: United Kingdom, Ireland, Germany
Employer's Liability Insurance
Legally mandatory in the UK for any business with employees. Covers claims from employees for work-related illness or injury.
Typical UK premium: £80–£600/yr
Available in: United Kingdom
What each policy covers
| Professional Indemnity | Employer's Liability Insurance |
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What each policy excludes
| Professional Indemnity | Employer's Liability Insurance |
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Choose Professional Indemnity if…
- You need to protect against: claims for professional negligence.
- You need to protect against: breach of duty claims.
- You need to protect against: defamation and intellectual property infringement.
- Your budget for this risk is around £150–£2,000/yr.
Choose Employer's Liability Insurance if…
- You need to protect against: employee injury claims.
- You need to protect against: occupational disease claims.
- You need to protect against: legal defence costs.
- Your budget for this risk is around £80–£600/yr.
Frequently asked questions
What is the difference between Professional Indemnity and Employer's Liability Insurance?
Professional Indemnity: Protects professionals and businesses against claims for financial loss suffered by clients as a result of negligent advice, errors, or omissions. Employer's Liability Insurance: Legally mandatory in the UK for any business with employees. Covers claims from employees for work-related illness or injury. They protect against different events, so many people hold one, the other, or both depending on their circumstances.
Is Professional Indemnity or Employer's Liability Insurance more expensive?
Typical UK annual premiums run £150–£2,000/yr for Professional Indemnity and £80–£600/yr for Employer's Liability Insurance. Your actual price depends on your circumstances and chosen cover level — always get a live quote before deciding.
Do I need both Professional Indemnity and Employer's Liability Insurance?
Not always. Because professional indemnity and employer's liability insurance cover different risks, holding both gives the broadest protection, but many people only need one. Compare what each covers below and pick the cover that matches your actual exposure.
Who needs professional indemnity insurance?
Any business that provides professional advice or services — consultants, architects, accountants, IT professionals, designers, and therapists. Many professional bodies (FCA, RICS, Law Society) require it as a condition of membership.
Is employer's liability insurance mandatory in the UK?
Yes — the Employers' Liability (Compulsory Insurance) Act 1969 requires all UK businesses with one or more employees to hold at least £5 million of employer's liability cover. The fine for non-compliance is up to £2,500 per day.
Compare real quotes for both
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GeraSure is a comparison and referral service. Insurance products are provided by FCA-authorised or equivalent regulated insurers in each jurisdiction. GeraSure does not underwrite insurance policies and does not provide financial advice. Always read the policy wording before purchasing.