Surprising things which impact the cost of PII

An incredible number of different factors come into play when insurers price their professional indemnity quotes and policies, but the 2026 landscape is defined by a 'hard market' where insurers have significantly tightened their risk appetite. Because persistent inflation has driven up legal defence costs and settlement values over the last five years, insurance companies are pricing up for 'unknowns' more aggressively than ever. In this scrutinized environment, being truthful and highly organised is no longer just a virtue—it is a financial necessity. To secure a competitive premium today, you must eliminate 'surprising' red flags that suggest disorder, as even minor inconsistencies can lead to significantly higher quotes or a flat refusal to provide cover.

Tables of Contents

• How is Professional Indemnity risk assessed?
• How should I fill out my proposal form?
• Manners
• Online presence matters
• Your website is critical
• when you buy your policy
• Your insurance history
• How you react to claims

How is Professional Indemnity risk assessed?

Professional indemnity risk is assessed using broad industry pricing ranges, but the high inflation of the mid-2020s has rendered many historical claims datasets obsolete. Today’s underwriters are factoring in the sharply rising costs of professional negligence settlements and hourly legal fees, meaning there is far less room for 'best guessing.' Instead, underwriters heavily scrutinise any data point that suggests a business isn't fully in control of its risk. To combat this, policyholders must present themselves as exceptionally low-risk and disciplined to avoid the higher premiums being applied to businesses that appear complex or poorly defined.

How should I fill out my proposal form?

You should fill out your proposal form as neatly and diligently as possible to present your business in the most complete and flattering light possible. Your proposal form is the first impression an insurer will get of you, and if the document is hastily scribbled all over, difficult to read, untidy and incomplete it is a huge red flags for insurers and they will err on the side of caution when pricing (meaning higher premiums). Take the time to complete the form and if in doubt, call the insurer or broker to double check what is required. This document could save your business one day.

Manners

If you are rude, confrontational or dismissive of insurance when speaking with insurance company representatives, they will be unlikely to go out of their way to obtain the best premium for you, reasoning that you are more likely to behave in this manner with your clients or stakeholders, and also that people will be more willing to sue you in the event of a mistake. Being patient, polite and straightforward with insurance company representatives can make a surprising difference to your quoted premium.

Online presence matters

Once a proposal form is on their desk the first thing a representative will do is google you. They will review as much as they can online to determine what kind of a business you run and what kind of a risk your activities and personal approach present, including checking and considering:

Companies House is often used to check up on prior bankruptcies or other businesses (a director managing multiple businesses may be considered a greater hazard than a sole director due to split attentions, for example). Social media posts highlight the way the company and its representatives conduct themselves online, as do news articles, court records and company forums, any of which could contribute to a claim. Even your email address can reflect poorly on you. If it’s ‘[email protected]’ it may be worth using an alternate email address to seek quotes.

Your website is critical

Your company website is a common source of information for insurance companies, but in 2026, underwriters are also looking at your broader digital footprint. They are now just as likely to scan your active social media profiles, such as LinkedIn, Instagram, or TikTok, to verify that your day-to-day activities align with what you’ve declared on your application. If your LinkedIn profile claims expertise in a high-risk area that you haven't mentioned to your insurer, it can trigger a premium hike or invalidate a future claim. Be prepared to ensure that all public-facing information, from your 'About Us' page to your latest social posts, accurately reflects your business's current responsibilities and subcontracting relationships.

When you buy your professional indemnity policy

If you’re shopping for professional indemnity last minute, be prepared to pay more. Just like a poorly written proposal form or bad manners, urgent insurance requirements are a red flag. If you need cover to win a contract, insurers will be asking why you didn’t see the need to protect your business beforehand. Insurers will also potentially exclude any prior work you’ve done, or apply a higher premium to cover historic work since professional indemnity is claims made.

Your insurance history

Moving insurers regularly looking for the best premium can come back to bite you over time as insurers realise you’re unlikely to hold a policy with them for more than 12 months. Professional indemnity is especially impacted by this, as each new insurer must take on the risk for all of your previous work. The paradox here is that companies who stay with one insurer long term claims free will often end up with the best premiums. Pick a favourite company and continue to shop around each year, but bring new quotes back to your chosen insurer for comparison and competitive pricing, and it will pay off in the long run.

How you react to claims

Premiums are always going to rise following claims, but the way you reacted to any made against you will determine how much they rise by and how long for. If you can provide insurers with comprehensive details of how you’ve reduced your risk since the claim (changed protocols, new certifications, new safeguards), you can help to keep your premiums as low as possible. Even if you’ve never been claimed against, if you research claims in your industry and can tell insurers how you mitigate the most common types, this can save you significantly.