Professional indemnity market
The UK professional indemnity (PI) market is worth several hundred million pounds per year in gross written premium (Lloyd's + ABI data). Freelance/SME PI is a fast-growing sub-segment as more small businesses recognise their exposure.
Cyber insurance adoption
Cyber insurance uptake among UK SMEs has grown rapidly since 2019 — ABI research shows a rising percentage of businesses now hold some form of cyber cover, driven by GDPR/DPA obligations, ransomware exposure, and larger clients requiring proof of cyber cover in contracts.
Claim frequency
Industry data suggests fewer than 10% of freelance PI policies see a claim in any given year — but when claims occur, average payouts run into thousands of pounds, and legal defence costs alone often exceed the annual premium.
Employers' Liability (compulsory)
Employers' Liability Insurance is legally required in the UK for any business with employees (Employers' Liability (Compulsory Insurance) Act 1969). Minimum £5 million cover. Sole freelancers with no employees are exempt from the legal requirement.
Sources
Only for certain professions (solicitors, chartered accountants, some financial services). For most freelancers, PI is commercially essential but not legally mandated.
No — fewer than 10% per year on typical portfolios. But when claims occur, they justify the annual premium many times over.
Any UK business with employees needs £5m minimum EL cover. Sole freelancers with no employees are exempt.