PII Premium Finance
Don’t let your PII renewal
dictate your cash flow.
Spread the cost of your professional indemnity premium while preserving working capital for salaries, growth, tax obligations and investment.
Who this is for
- Solicitors & law firms →
- Accountants →
- Architects →
- Surveyors, engineers and consultants →
- Healthcare professionals
The pressure
One of the largest cheques a firm writes all year.
For regulated professional firms, professional indemnity insurance isn’t optional. It has to be in place to practise, and the premium usually falls due in one amount at renewal.
For solicitors in particular, it is rarely a minor expense. In the SRA’s research sample, PII premiums were typically around 3% to 9% of turnover, with a median of 5%, and smaller firms were disproportionately represented among firms paying more than 10% of turnover. Those are figures from the SRA’s sample, not a rule for every firm, but they show why renewal can be one of the biggest cash events of a firm’s year. (SRA research; SRA announcement)
The Law Society includes funding for professional indemnity premiums, and for practising certificates, among the funding options law firms can consider. (Law Society: seven funding options your law firm could consider)
Paying it in one go can wipe out months of accumulated cash, often in the same period as a VAT quarter, partner drawings or a tax bill.
Keep your cash working.
The premium is spread; your reserves stay in the business.
Renew on time.
Funding can be arranged around your renewal date so cover isn’t put at risk.
Plan the year.
A known monthly cost is easier to budget than one large annual payment.
What can be funded
What it can cover.
- 01 Annual PII premiums, primary and top-up layers
- 02 Insurance premium tax on the premium
- 03 Run-off cover on a merger, acquisition or closure
- 04 Other business insurance renewed alongside PII
- 05 Practising certificate and regulatory fees, often funded together Practising Certificate Funding →
How it’s often structured
Structured around the practice.
A funder pays the premium to the insurer or broker on your behalf, and the firm repays in monthly instalments over the policy year, typically ten to twelve months. Because the facility is tied to a specific policy, arrangements are usually quicker and simpler than a general business loan.
Timing matters. The best time to talk to us is before your renewal terms arrive, not after.
How we help
More options than the renewal notice suggests.
Many firms simply take whatever instalment option comes with the renewal. Premium finance is available from specialist premium funders, banks and alternative lenders, on different terms. We search the market, compare the options alongside anything your insurance broker offers, and can look at PII together with practising certificates, tax or WIP if a single arrangement makes more sense.
Who this is for
- Solicitors & law firmsThe largest and least flexible PII commitment in the professions.
- AccountantsPI cover required by your professional body, often renewed close to the January peak.
- ArchitectsPII is a registration requirement and premiums can move sharply after a claim or market shift.
- Surveyors, engineers and consultantsAnnual premiums across the professions.
- Healthcare professionalsWhere indemnity is arranged as insurance rather than through a defence organisation.
Questions
What firms usually ask.
Isn’t this something my insurance broker arranges?
Some insurance brokers offer premium finance directly. We search the wider market and compare that with alternatives, and can look at it alongside the firm’s wider funding, for example if you also need WIP or tax funding.
What happens if we switch insurer mid-year?
The facility is tied to the policy, so a change needs to be handled with the funder. We’ll explain the implications before you commit.
Our premium has jumped after a claim. Can it still be funded?
Often, yes. A premium increase is exactly when spreading the cost matters most.
Can we fund run-off cover when we merge or close?
Run-off can be a very large single payment. It’s worth raising early as part of any merger, acquisition or succession plan.
Let's talk
Renewal coming up?
Talk to us before the premium lands.
Before you approach a lender, speak to someone who understands the transaction. Confidential, no-obligation initial discussion.
Finance of £25,000 or less for sole traders and small partnerships can be regulated consumer credit. We'll tell you at the outset if that applies to your firm.