Professional indemnity insurance can help protect a small business against claims that its advice, designs, services or professional work caused a client financial loss, subject to the policy’s terms, exclusions and limits. It may also contribute towards legal defence costs, but the insurer decides whether a claim is covered. It is not legally required for every business, although some professions, regulators or client contracts may require it. Even where it is optional, it can be worth considering if your work involves specialist advice or contractual responsibilities; compare cover with an FCA-authorised provider or regulated broker.