Written by Michael Foote, Insurance Expert
Professional indemnity (PI) insurance is designed to reflect how your business operates at the time of purchase. But if your work changes significantly during the policy term, it may affect how your cover responds in the event of a claim. This article outlines examples of changes that typically prompt a review, so you can stay informed and avoid complications.
For specific policy advice, speak to your broker or insurer directly. For general information on how PI cover works, visit our Professional Indemnity Insurance page.
Changes That May Affect Your Policy
Every insurer will define “material changes” slightly differently, but these are some of the most common examples that may need to be disclosed:
- New services – such as expanding into project management, contract administration or survey work
- Fee income growth – especially if you’ve exceeded the turnover estimate declared at the start of your policy
- Relocation or new premises – which can alter the geographical risk profile
- Changes in staffing – like appointing a new director or bringing in specialist roles
- Company structure updates – including mergers, acquisitions or forming a new legal entity
Notifying your insurer of these types of changes allows them to assess whether your cover still fits your current operations.
Why Insurers Expect Notification
If a claim arises and the work involved falls outside what your insurer understood about your business, you may encounter:
- Delays in the claims process
- Disputes over whether cover applies
- Requests for additional premium
- In serious cases, partial or full rejection of the claim
Keeping your insurer updated gives them the opportunity to adjust the policy if needed – whether by amending your limit, adding an endorsement or adjusting the premium.
What the Notification Process Usually Involves
In most cases, you’ll speak to your broker. They’ll help you:
- Explain the change clearly and provide any supporting documents (such as updated scopes or revised financials)
- Determine whether a mid-term policy adjustment is required
- Obtain confirmation that the insurer has accepted the change
This process is typically straightforward and can be done at any point during your policy year.
Maintain Good Records
Keep a dated copy of:
- Your original policy schedule
- All email correspondence about changes
- Any updated policy documents issued after a mid-term adjustment
A clear audit trail helps support your position if a claim is ever disputed.
Final Thought
This article isn’t a substitute for personal advice. If you’re unsure whether a change to your business might affect your PI cover, it’s usually worth checking. Being proactive can prevent confusion later – especially when it comes to claim time.
For more information on how PI insurance works and what’s typically included, visit our Professional Indemnity Insurance page.
