Hi Neil
To answer your question simply, without getting into the pros cons & misuse
of PI etc.
I would suggest a reasonable normal level for the total PI cover held by a
consultantcy would be in the range £1M to 2M (usually in the annual
aggregate) - I give a range as this will depend on the size of the consultancy.
However..see below about cover by contract.
Many insurers try to push consultants to limit the PI on a contract - some
unreasonably seek to limit the PI offered to the contract value.
In our T&C we would normally look to contractually limit the PI cover offered
on most projects to a reasonable £100k or ten times the contract value (which
ever is greater) and then negotiate if required on a project specific basis (all
within the framework of our total PI cover).
Some useful general notes here:
http://www.griffithsandarmour.com/Professional_Indemnity_insurance_explained
Chris Dainton
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