Solicitors' professional indemnity insurance is unlike anything else in this guide series: it isn't a prudent purchase but a regulatory condition of practising. Every SRA-authorised firm in England and Wales must hold qualifying PII with a participating insurer, on the SRA's Minimum Terms and Conditions – and the market works differently as a result. This guide explains the requirements, the real costs, and how to buy well.
What insurance does a law firm need?
Qualifying professional indemnity insurance – mandatory. The SRA's minimums: £2m each-and-every-claim for sole practitioners and partnerships, £3m for LLPs and incorporated practices – and "each-and-every-claim" means every separate claim attracts the full limit, not a shared annual pool. Cover must be placed with an insurer on the SRA's Participating Insurers list (52 insurers for 2025/26 – the deepest panel ever); a policy from anyone else puts the firm in breach. Beyond the floor, firms must hold "adequate and appropriate" cover for their actual work – the SRA expects a reasoned assessment, and conveyancing or commercial firms routinely buy top-up layers above the minimum.
Run-off – mandatory and non-cancellable. Uniquely, the SRA prescribes six years of run-off cover on closure, typically costing around three times the annual premium. Firms that fail to renew enter a 90-day Extended Policy Period (no new business after day 30) and must notify the SRA within five business days. Claims emerging after the six years fall to the Solicitors Indemnity Fund, now SRA-controlled.
Alongside PII: employers' liability (legal requirement), office/cyber cover (client data and funds make firms prime targets – note that misuse of client money is generally excluded from PII), and management liability for larger practices.
How much does it cost?
This is a fee-income-rated market: premiums typically run 1.5%–5% of fee income, but up to ~10% for conveyancing-heavy firms – conveyancing is consistently the largest claims source by volume and value. Insurer minimum premiums of £2,000–£5,000 apply regardless of size, so a new sole practitioner should budget from roughly £2,000 upward. Claims history, work split, and supervision arrangements drive the rest.
How to buy: the broker-dominated market
Over 90% of solicitors buy through brokers, and most participating insurers only quote via brokers – so the provider comparison here is really a broker comparison. Specialists include Howden (a dominant professional-lines broker), Lockton, Marsh Commercial, and dedicated solicitors-PII brokers such as Artemis and Apex; the Law Society also maintains panel arrangements. What a good broker earns: access across the full participating-insurer list, early-renewal strategy (critical for firms with claims or high-risk work splits), and technically correct handling of run-off and successor-practice rules – areas where generalist brokers reliably err. Comparison sites and direct online insurers are not a route to SRA-qualifying cover.
Reviews and expert ratings
Consumer review scores are close to meaningless in this broker-placed market; the relevant diligence is the broker's solicitors-PII specialism, insurer-panel access, and claims advocacy. Which? and Fairer Finance don't rate solicitors' PII. The SRA's published Participating Insurers list is the definitive quality gate.
Key takeaway
Start renewal early, present claims history and work split transparently (the Insurance Act 2015 fair-presentation duty applies), use a genuine solicitors-PII specialist broker, and never buy on price alone in a market with mandatory run-off multipliers – the cheap policy this year shapes your closure costs for six. New firms: the SRA requires an insurance offer as part of authorisation, so engage a broker before applying.
Sources
- sra.org.uk (Indemnity Insurance Rules; PII guidance; adequate & appropriate insurance guidance)
- apexinsurancebrokers.co.uk/solicitors-pi-insurance-uk-guide-2026/ (2026 market detail incl. 52 participating insurers)
- professionalindemnity.co.uk/news/ultimate-guide-to-solicitors-professional-indemnity/ (rates 1.5–5%, minimum premiums, run-off multiples)
- artemisltd.co.uk (2026 guide); lexisnexis.co.uk practice notes