INSURANCE GUIDE Solicitors Professional Indemnity Insurance UK - SRA requirements and minimum terms |
TL;DR
- All SRA-authorised law firms must hold professional indemnity insurance meeting the SRA Minimum Terms and Conditions (MTC) as a condition of authorisation.
- The minimum indemnity limit is GBP 2 million per claim for most firms (GBP 3 million for limited liability partnerships and incorporated firms).
- Solicitors PI is claims-made - the policy in force when the claim is made (not when the negligent work was done) responds.
- The assigned risks pool (ARP) provides transitional cover for firms that cannot obtain commercial PI market coverage.
- Annual premiums depend heavily on the firm practice areas, fee income, claims history, and number of principals.
Last reviewed: June 2026
KEY FACTS | |
| Legal basis | Solicitors Act 1974 and SRA Authorisation of Individuals Regulations 2019 - PI insurance mandatory for all SRA-authorised firms |
| Minimum indemnity limit | GBP 2 million per claim for most firms; GBP 3 million for LLPs and recognised bodies |
| Policy basis | Claims-made - policy in force when claim is made responds, regardless of when negligent work was done |
| Qualifying insurers | SRA publishes list of qualifying insurers - only QIs can provide solicitors PI satisfying MTC requirements |
| ARP | Assigned Risks Pool - provides up to 12 months transitional cover for firms that cannot obtain commercial PI |
| Annual premium range | Highly variable - low-risk non-contentious practice: GBP 3,000 to GBP 10,000. High-risk contentious/property: GBP 10,000 to GBP 50,000+ |
Solicitors PI: The Regulatory Framework
Professional indemnity insurance for solicitors in England and Wales is compulsory under the SRA Authorisation of Individuals Regulations 2019 and the SRA Indemnity Insurance Rules. All firms authorised by the Solicitors Regulation Authority (SRA) must hold PI insurance meeting the SRA Minimum Terms and Conditions (MTC) from a qualifying insurer (QI) as a condition of their authorisation to practise.
The MTC set out the minimum scope of cover that a qualifying solicitors PI policy must provide. Insurers wishing to provide solicitors PI must apply to the SRA to become a qualifying insurer and must agree to provide cover on terms no less favourable than the MTC. The SRA publishes a list of current qualifying insurers on its website.
KEY FACTS
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SRA Minimum Terms and Conditions: Key Provisions
The MTC require that every qualifying solicitors PI policy includes:
- Minimum indemnity limit of GBP 2 million per claim (GBP 3 million for LLPs and incorporated practices)
- Cover on a claims-made basis with retroactive cover for all prior work
- No aggregate limit (each claim must be available to the full indemnity limit)
- Automatic reinstatement of the limit after each claim
- Cover for all principals, employees, and former principals and employees
- Cover for civil liability including negligence, breach of duty, and dishonesty by employees
- Run-off cover for 6 years after the firm ceases practice
- No avoidance of cover for innocent partners where a dishonest act was committed by another partner
High-Risk Practice Areas
Solicitors PI premiums reflect the risk profile of the firm practice areas. High-risk areas that attract higher premiums include: residential conveyancing (high volume, high value, and frequent negligence claims arising from property transactions); commercial property; personal injury (claimant PI firms); financial services and investment advice; wills and probate (long tail risk); and litigation (particularly high-value commercial disputes). Non-contentious corporate and commercial work typically attracts lower premiums.
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Disclaimer: This guide is for general information only. Kael Tripton Ltd is not authorised or regulated by the FCA. Always verify details with an FCA-authorised insurer or broker before purchasing. |
Frequently Asked Questions
What is the SRA Minimum Terms and Conditions?
The SRA MTC are the mandatory minimum requirements that all qualifying solicitors PI policies must meet. They set out the minimum indemnity limit (GBP 2 million per claim), the claims-made basis, the scope of cover (civil liability including negligence and employee dishonesty), and the run-off cover period. Qualifying insurers must provide cover on terms at least as favourable as the MTC.
What is a qualifying insurer for solicitors PI?
A qualifying insurer is an insurer approved by the SRA to provide solicitors professional indemnity insurance. Only QIs can provide cover that satisfies the SRA authorisation requirements. The SRA publishes a list of current qualifying insurers at sra.org.uk. Firms should verify that their PI insurer is on the current QI list.
What happens if a law firm cannot get PI cover?
Law firms that cannot obtain commercial PI from a qualifying insurer can apply to the Assigned Risks Pool (ARP) for up to 12 months of emergency cover at a set premium. The ARP is a last-resort measure and ARP premiums are typically higher than commercial market rates. A firm that remains unable to obtain commercial cover after the ARP period may face SRA authorisation issues.
What is run-off cover for solicitors?
Run-off cover provides PI protection for claims arising from work done before a firm closed, for 6 years after closure. Under the MTC, the last qualifying insurer before closure has specific obligations to provide run-off cover. The closing firm is responsible for the run-off premium. Run-off cover is essential because negligence claims can arise years after the relevant work was completed.
Does solicitors PI cover dishonesty by a fee earner?
Yes. The SRA MTC require that solicitors PI covers civil liability arising from dishonesty by employees and partners, with an innocent party protection clause ensuring that innocent partners are not denied cover because of the dishonest acts of another partner. This is an important MTC requirement distinguishing solicitors PI from standard PI insurance.
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