Professional Indemnity Tips Brokers Can Actually Use

Professional Indemnity insurance is rarely the reason a client calls their broker.
Until something changes.

• A new contract.
• A new service line.
• A restructure.
• Or a client saying something that sounds harmless but should trigger a deeper conversation.

This is where brokers add real value, not by reciting policy wording but by spotting the moments that matter and asking the right questions early. Based on the most common queries our underwriting team receives throughout the year, here’s a practical PI “cheat sheet” you can use during renewal discussions and mid-term reviews.

Not as a checklist.
As conversation starters.

If your client says: “That’s just the company name we trade under”

Then discuss: Who is actually insured

The named insured should align with the entity that signs contracts and delivers professional services. Where this doesn’t align, claims can become complicated very quickly.

It’s common for businesses to evolve over time. New entities. Holding companies. Trust structures. Sometimes, the policy hasn’t kept pace.

This is the time to step back and confirm:

• Which legal entity is contracting with clients
• Whether that entity falls within the policy definition of insured
• Whether any recent structural changes need to be reflected in the schedule.

It’s a simple check that can prevent uncomfortable conversations later.

If your client says: “We don’t really do that anymore”

Then discuss: Professional Services Description

The Professional Services Description should capture what the client does now and what they’ve done in the past that could still give rise to a claim.

This is where problems often surface. Services evolve. Scope expands. Subcontractors are engaged. But the description remains the same year after year.

Useful prompts here include:

• Have any services been added, removed or materially changed?
• Are there services performed by subcontractors on the client’s behalf?
• Are legacy services still relevant from a claims-made perspective?

The goal isn’t to over-engineer the description. It’s to ensure it reflects reality.

If your client says: “We’ve been operating for years, that date doesn’t matter”

Then discuss: Retroactive date alignment

The retroactive date is one of the most misunderstood elements of a PI policy. It matters because it determines which historical acts can be covered.

A retroactive date that doesn’t align with the business’s commencement can create unintended gaps. This is particularly relevant for businesses that have:

• Changed insurers multiple times
• Purchased run-off from different markets
• Undergone restructures or acquisitions

This is often a quiet conversation at renewal, but it’s one of the most important.

If your client says: “We can cancel once the project wraps up”

Then discuss: How claims-made policies really work

Many clients still assume PI operates like property insurance. An event occurs. A claim follows.

Claims-made policies don’t operate that way.

This is the moment to explain, in plain language:

• Claims must be made and notified during the policy period
• Cancelling cover can leave past work exposed
• Notifications matter just as much as incidents

If your client says: “We’re considering a corporate transaction”

Then discuss: Run-off cover planning

Whether it’s retirement, a sale, or a wind-up, PI exposure doesn’t disappear when a business ceases trading. Claims can still arise years later. A run-off policy is a single multi-year policy that covers historical acts after a business has ceased trading or changed ownership.

When any major corporate transaction occurs, it’s relevant to:

• Consider whether run-off may be required
• Discuss cost and cover with underwriters – which can differ widely
• Encourage planning rather than last-minute decisions

It can be hard to place run-off after the fact, so planning ahead is helpful.

If your client says: “We’re thinking of moving insurers to save premium”

Then discuss: Continuity of cover risks

Price matters. But continuity matters too.

Moving insurers can introduce risks if retroactive dates, definitions or coverage positions change. This doesn’t mean clients shouldn’t move. It means they should do so with eyes open.

A strong broker conversation here focuses on:

• What needs to stay consistent
• What changes might increase risk
• What risk management steps help smooth the transition

If your client says: “Let's reduce the limit”

Then discuss: Inclusive vs exclusive of costs

Many clients don’t realise that defence costs can erode the limit of indemnity. Others assume all limits work the same way.

This is where you can explain:

• The difference between costs-inclusive and costs-exclusive limits
• How defence costs behave in real claims
• Why the structure of the limit matters, not just the number
• Whether limits still align with current work
• Whether reinstatements are worth considering
• How contractual indemnities interact with policy limits

It’s a nuanced conversation, but one that pays dividends when claims arise.

If your client says: “We’ve grown substantially”

Then discuss: Limits and reinstatements

As businesses grow, contracts become larger and client expectations rise. Limits that worked three years ago may no longer reflect today’s risk profile.

Don’t forget the contract conversation

Many PI issues don’t start with insurance. They start with contracts.

Encouraging clients to review indemnity clauses and insurance requirements before signing can reduce friction later. So can reminding them that clear documentation, client communication and quality control all help manage exposure.

Risk management and insurance work best together.

Why this matters for brokers

Brokers who lean into these conversations aren’t just arranging cover. They’re helping clients understand risk, anticipate change and avoid surprises at claim time.

If any of these prompts raised questions you’d like to explore further, Hutch runs regular PI training sessions specifically for brokers. They’re practical, scenario-led and focused on the issues that arise across financial lines.

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