Professional Indemnity vs Employer's Liability Insurance
A plain-English comparison of two GeraSure policy lines — what each covers, what it excludes, typical annual premium, and how to choose.
Quick Answer
Professional Indemnity typically costs £150–£2000/yr and Employer's Liability Insurance typically costs £80–£600/yr. Employer's Liability Insurance has the lower entry premium, but the right choice depends on what you need to protect — read the coverage below.
Professional Indemnity
Protects professionals and businesses against claims for financial loss suffered by clients as a result of negligent advice, errors, or omissions.
- Avg annual premium
- £150–£2000/yr
- Type
- liability
- Available in
- 3 markets
Employer's Liability Insurance
Legally mandatory in the UK for any business with employees. Covers claims from employees for work-related illness or injury.
- Avg annual premium
- £80–£600/yr
- Type
- liability
- Available in
- 1 markets
What each policy covers
Professional Indemnity covers
- ✓ Claims for professional negligence
- ✓ Breach of duty claims
- ✓ Defamation and intellectual property infringement
- ✓ Loss of documents
- ✓ Legal defence costs
Key exclusions
- ✕ Fraud or dishonesty
- ✕ Insolvency of the insured business
- ✕ Claims known at policy inception
- ✕ Contractual liability exceeding duty of care
Employer's Liability Insurance covers
- ✓ Employee injury claims
- ✓ Occupational disease claims
- ✓ Legal defence costs
- ✓ Claimant's awarded damages
Key exclusions
- ✕ Claims from family members who are also directors (check policy)
- ✕ Contractor disputes (covered by PLI)
Where each is available
Professional Indemnity is also offered in Ireland, Germany where Employer's Liability Insurance is not.
Frequently asked questions
Is professional indemnity more expensive than employer's liability insurance?
Based on GeraSure's average annual premium ranges, professional indemnity typically costs £150–£2000/yr and employer's liability insurance typically costs £80–£600/yr. Employer's Liability Insurance usually has the lower starting premium. Your actual quote depends on your risk profile, location and cover level.
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.
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.