Professional Indemnity Insurance

Protect your work and reputation with tailored insurance for Irish contractors and freelancers.

Professional indemnity insurance is an essential form of cover for many contractors, freelancers, and self-employed professionals in Ireland. If your work involves giving advice, providing professional services, or delivering work that a client relies on, this insurance helps protect you if a mistake leads to a financial loss.

This guide explains what professional indemnity insurance is, who needs it, what it covers, how much it costs, and how contractors in Ireland can get the right cover.

What Is Professional Indemnity Insurance?

Professional indemnity insurance (often called PI insurance) protects you if a client claims that your professional services caused them a financial loss.

This can include claims related to:

• Professional negligence

• Errors or omissions

• Incorrect advice

• Breach of professional duty

If a claim is made, professional indemnity insurance can help cover legal defence costs and any compensation you may be required to pay.

Do Contractors Need Professional Indemnity Insurance in Ireland?

Professional indemnity insurance is not legally required by law in Ireland for most contractors. However, many contractors must have it in practice.

You may need professional indemnity insurance if:

• Your contract requires it

• You provide advice, designs, reports, or consultancy

• Clients rely on your work to make decisions

• You work as an IT contractor, consultant, engineer, or designer

• You are a freelancer offering professional services

In many industries, clients will not engage a contractor without proof of professional indemnity insurance.

Who Needs Professional Indemnity Insurance?

Professional indemnity insurance is commonly taken out by:

• IT contractors and software developers

• Consultants and business advisors

• Engineers and technical specialists

• Designers and creative professionals

• Architects and surveyors

• Freelancers providing specialist services

If your work could result in a client suffering a financial loss, professional indemnity insurance is worth considering.

What Does Professional Indemnity Insurance Cover?

A typical professional indemnity insurance policy may cover:

• Legal defence costs

• Compensation awarded to clients

• Claims arising from professional mistakes

• Breach of confidentiality

• Loss of documents or data (depending on the policy)

Cover levels and exclusions vary, so it’s important to understand what is included before choosing a policy.

What Is Not Covered?

Professional indemnity insurance usually does not cover:

• Physical injury or property damage (public liability insurance covers this)

• Employee-related claims

• Fraud or deliberate wrongdoing

• General business risks unrelated to professional services

Many contractors combine professional indemnity insurance with other types of cover for full protection.

How Much Professional Indemnity Insurance Do Contractors Need?

The level of cover you need depends on:

• Your profession and risk profile

• Client or contract requirements

• The potential financial impact of a mistake

Common cover limits in Ireland include:

• €250,000

• €500,000

• €1 million

• €2 million or more

Always check your contracts, as some specify a minimum level of professional indemnity cover.

Professional Indemnity Insurance Cost in Ireland

The cost of professional indemnity insurance for contractors in Ireland depends on several factors, including:

• Type of professional services provided

• Annual turnover

• Level of cover required

• Claims history

• Business structure (sole trader or limited company)

As a general guide:

• Low-risk professionals may pay a few hundred euro per year

• Higher-risk roles or higher cover limits may cost more

Comparing quotes is the best way to understand your actual professional indemnity insurance cost.

Professional Indemnity vs Public Liability Insurance

These two types of insurance cover different risks:

• Professional indemnity insurance covers financial loss caused by professional advice or services

• Public liability insurance covers injury or property damage to third parties

Many contractors need both, depending on how and where they work.

How to Get Professional Indemnity Insurance as a Contractor

The easiest way to find the right cover is to compare options through licensed Irish insurance brokers.

A broker can:

• Assess your risk and profession

• Recommend suitable cover levels

• Compare multiple insurers

• Help ensure your policy meets contract requirements

Get a Free Professional Indemnity Insurance Quote

If you’re a contractor or freelancer in Ireland, comparing quotes can help you find appropriate cover at a competitive price.

👉 Request a free, no-obligation quote and compare professional indemnity insurance options from licensed Irish brokers.