Solicitors’ Professional Indemnity Insurance (PI) is one of the most complex areas of the insurance market – and one of the most critical for law firms of all sizes. Every solicitor in England and Wales is required to have qualifying PI insurance that meets the Solicitors Regulation Authority (SRA) minimum terms and conditions, but placing or renewing cover is getting harder and more expensive.
At Champion Professional Risks, we specialise in PI insurance across all professions – and Solicitors’ PI is a core area of expertise. In this article, we explore why it’s such a difficult class of business, what challenges both law firms and insurers face, and how to navigate the renewal process with confidence.
Why is Solicitors’ PI Insurance so difficult to place?
1. SRA Minimum Terms and Conditions
- These terms are non-negotiable and significantly more generous to claimants than standard commercial PI policies.
- Insurers cannot easily reject claims or limit liability based on late notification, dishonesty of partners, or insolvency – meaning they carry more risk.
2. High-value, long-tail claims
- Claims can emerge many years after the work was done, especially in areas like conveyancing, wills, probate, and commercial contracts.
- Even small errors can result in millions of pounds in damages, especially with rising property values and litigation costs.
3. Concentration of risk
- Conveyancing-heavy firms in particular are seen as higher risk.
- The risk is concentrated and difficult to diversify, leading insurers to be selective or increase premiums significantly.
Top challenges facing law firms
- Premium volatility: Premiums can spike at renewal, especially if there’s a change in the firm’s risk profile or the insurer exits the market.
- Limited market choice: There are fewer participating insurers than ever before, and many won’t quote on smaller or specialist firms.
- Strict underwriting: Firms face detailed scrutiny, especially around work type splits, claims history, and risk management processes.
- Coverage gaps when moving insurers: Tailoring or switching cover needs to be handled carefully to avoid gaps – particularly for run-off and successor practice issues.
Challenges for insurers
- Open-ended liability: SRA minimum terms offer no caps on run-off claims and provide limited scope to decline a claim.
- Loss ratios: Solicitors’ PI often generates poor loss ratios. Insurers face significant exposure with little pricing flexibility.
- Fraud and dishonesty: Even when a solicitor has acted dishonestly, the insurer is typically still required to pay out under the minimum terms.
- Regulatory pressure: Insurers must tread carefully in how they handle renewals, pricing, and coverage under FCA rules – particularly with smaller firms.
Advice for Law Firms: How to secure the best PI outcome
- Engage early – at Least 6–8 Weeks Before Renewal
– Start the process early to allow time for proper market engagement and negotiation.
- Work with a specialist broker
– A generic commercial broker won’t have the necessary access or expertise. Champion Professional Risks works with all major and niche PI insurers to match firms with the right market. - Be transparent and detailed
– Clear disclosure of risk areas, especially around conveyancing, lender panels, or historic claims, builds trust and improves your negotiating position. - Invest in risk management
– Demonstrate robust systems for file reviews, supervision, conflict checking, and cyber security. Some insurers now require this as standard. - Plan for the long term
– Consider multi-year strategies or mid-term market switches. We can advise on market trends and future capacity to help reduce shocks at renewal.
Champion Professional Risks: The trusted PI partner for solicitors
As a specialist PI broker, Champion Professional Risks understands the pressures law firms face – from sole practitioners to multi-partner LLPs. We work closely with you to present your firm in the best possible light to insurers, navigate a tough market, and ensure you’re fully protected.
✅ Access to all rated solicitors’ PI insurers
✅ Expertise in SRA-compliant policy placement
✅ Claims support and renewal strategies
✅ Competitive quotes for run-off cover
Need help with Solicitors’ PI Insurance?
Don’t wait until renewal season. Get in touch with Champion Professional Risks today to discuss your current cover, get expert advice, or obtain a competitive quote.
📞 Call us on 03330 430 430
📧 Email: Profin@ChampionInsure.co.uk
🌐 Visit: www.ChampionInsure.co.uk
