All solicitors in the United Kingdom are required to have professional indemnity insurance (PII) by their regulatory bodies. Solicitors in England and Wales are regulated by the Solicitors Regulation Authority (SRA), which sets out minimum terms and conditions that must be included in all solicitor professional indemnity policies.

It is imperative that solicitors and law firms recognise emerging professional indemnity risks and arrange a professional indemnity insurance policy to help provide protection against the risks that they may face.

What Can Be Covered in an Insurance Policy for Solicitors?

Solicitors’ Professional Indemnity Insurance helps covers civil liability claims arising from work in private legal practice. Most claims brought against solicitors working in private practice relate to professional negligence attributed to mistakes and errors and omissions. These types of claims can give rise to compensation and legal defence costs, which can be substantial.

What is often not included in a Solicitor’s Professional Indemnity Insurance Policy?

• Defence costs for disciplinary proceedings by the SRA or the Solicitors Disciplinary Tribunal
• Dishonesty, fraudulent acts and/or omissions that have been commissioned or condoned by an insured individual
• Personal debts and trading liabilities or guarantees, indemnities, or undertakings that directly or indirectly benefit an insured person
• Fines, penalties or orders to pay costs in the investigation into the professional conduct of an insured person

In addition, if your firm is found to have engaged in non-disclosure of relevant factors, misrepresentation, dishonesty or fraud, you may liable for the full costs.

How much cover does a solicitor firm need?

The minimum amount of cover that you are required to have will depend on your firm’s type. Firms defined by the SRA as relevant, recognised and licensed bodies are required to have cover of at least £3 million for any one claim. In all other circumstances (such as with sole practitioners and partnership firms), firms are required to have at least £2 million for any one claim.

What Factors May Influence Solicitor Insurance Premium Costs?

The cost of your PII premium will be determined by several factors, which include the following:

• Your firm’s insurance claims history
• The type of work performed by your firm
• The number of staff members at your firm
• Your firm’s revenue
• Excess amounts

Call us directly or complete our quote form and we’ll conduct a full review of your business’ insurance needs

We will approach our panel of insurers to find cover that meets your requirements at a competitive rate

Once agreed, your policy will start and you’ll be protected towards several eventualities.