Do Fire Protection Contractors Need Professional Indemnity Insurance?

If your work involves more than simply following installation plans, PI cover is essential to protect your business from claims that your input led to financial loss, delays, or system failure.

What Is Professional Indemnity Insurance?

Professional indemnity (PI) insurance protects your business if a client claims that your professional advice, design, or services caused them a financial loss — even if the work was carried out to specification.

It covers:

• Legal defence costs

• Compensation claims

• Negligence or error in professional services

• Breach of contract or duty of care

• Omissions in designs or specifications

Why It Matters in the Fire Protection Industry

Fire protection contractors are often more than just installers. You may:

• Design alarm or suppression layouts

• Recommend system specifications or products

• Produce CAD drawings for sign-off

• Certify or commission installations

• Advise on compliance with BS 5839, BS 9251, or EN 12845

• Work under design & build contracts

If your name is on the drawings, your input is used to shape the design, or you sign off a system — you’re exposed to risk.

Examples Where PI Insurance Protects Fire Contractors

Scenario 1: Design Error

You design a mist suppression system layout that doesn’t cover a key area, and it’s not noticed until final commissioning. The client claims for redesign costs and delays.

Scenario 2: Subcontracted Work

You outsource fire alarm system design to a third party, but under the contract, you’re liable. The system is non-compliant, and the client claims against your business.

Scenario 3: Advice Leads to Financial Loss

You recommend an installation method or control panel setup that later proves unsuitable for the premises. The building owner claims for rework and costs.

In all these cases, PI insurance could be the only thing standing between you and a five-figure legal bill.

Is Professional Indemnity Insurance a Legal Requirement?

No, professional indemnity insurance is not a legal requirement in the UK.
However, it’s often contractually required, especially when:

• Working on commercial or public sector projects

• Signing design & build contracts

• Tendering for main contractor roles

• Being asked to issue reports, layouts, or technical sign-offs

What Level of PI Cover Do You Need?

Most fire protection contractors opt for £250,000 to £1 million of cover, depending on:

• The size of contracts

• Whether you’re issuing certificates or designs

• Requirements from clients or main contractors

• Your level of involvement in the design process

Some public sector or commercial projects may require £2 million or more in PI cover as standard.

What’s the Difference Between PI and Public Liability?

How Much Does PI Insurance Cost?

It depends on your business size and risk exposure, but typically:

• From £15–£40/month for most small-to-medium contractors

• Increases with contract value, client type, or project complexity

• May be bundled with other cover (like public liability) at a discount

What Happens If You Don’t Have It?

Without PI insurance, you risk:

• Paying legal defence fees yourself

• Funding client compensation out of pocket

• Being in breach of contract

• Damaging your reputation with main contractors or developers

Even if a claim is unfounded, the cost to defend yourself can be thousands — especially with technical disputes or commercial delays.

Need a quote or want to review your current policy?
Call us on 01474 833 322 or get a fast online quote at: www.abainsurance.co.uk/trades-insurance-quote/