Professional Indemnity Insurance for Legal Practices
Solicitors are required to hold professional indemnity insurance as part of their regulatory obligations, but the right level of cover is about more than meeting a minimum requirement. Claims can arise from incorrect advice, missed deadlines, administrative errors or breaches of confidentiality — and the costs of defending even a straightforward allegation can be significant. Motts Insurance arranges professional indemnity insurance for legal practices throughout Cardiff, South Wales and across the UK.
- Legal defence costs covered
- Negligence and errors or omissions claims
- Missed deadlines and administrative errors
- Breach of confidentiality and data protection claims
- Retroactive cover for previous work (subject to continuous cover)
- Run-off cover options available
- Access to specialist insurers for legal practices
Solicitors Professional Indemnity Insurance Broker
Motts Insurance has been arranging professional indemnity insurance for legal practices since our founding in 1966. As an independent insurance broker, we are not tied to a single insurer — we work with a range of specialist markets to find cover that reflects the specific needs of your practice, whether you are a sole practitioner, a small firm or a larger legal business. We provide straightforward, personal advice and handle the placement on your behalf, including at renewal. Based in Penarth near Cardiff, we arrange solicitors professional indemnity insurance throughout South Wales and across the UK. For general professional indemnity insurance for other professions and consultants, please see our Professional Indemnity Insurance page.
Key Covers
- Negligence and professional errors
- Incorrect legal advice
- Missed court deadlines and limitation periods
- Administrative and clerical errors
- Breach of confidentiality
- Loss of documents or client data
- Defamation and intellectual property disputes
- Regulatory investigation defence costs
- Run-off cover for retired or closing practices
Solicitors Professional Indemnity Insurance FAQs
Professional indemnity insurance protects solicitors and legal practices against claims arising from negligent advice, errors in legal documents, missed court deadlines, or failure to act on a client’s instructions. If a client suffers a financial loss as a result of work your firm carried out, PI insurance covers the legal costs of defending the claim and any compensation awarded. For solicitors, where the consequences of professional error can be substantial, this cover is a fundamental protection for the practice.
Solicitors and legal professionals are among the most common purchasers of PI insurance, given the high-value and high-risk nature of legal advice. Beyond the legal sector, PI insurance is typically required by architects, engineers, surveyors, accountants, financial advisers, consultants, and any professional whose advice or services could cause a client financial loss. If you provide a skilled service for a fee, there is a strong case for PI cover — but for solicitors in England and Wales, it is not optional: it is a regulatory requirement.
Yes. Solicitors regulated by the Solicitors Regulation Authority (SRA) in England and Wales are required to hold professional indemnity insurance as a condition of their practising certificate. The SRA sets minimum indemnity levels — currently £2 million per claim for sole practitioners and partnerships, and £3 million for incorporated practices. Cover must be placed with a qualifying insurer approved by the SRA. Firms that close must also arrange run-off cover for a minimum of six years, protecting former clients against claims that arise after the practice has ceased trading. Motts Insurance can advise on both in-practice and run-off arrangements.
For SRA-regulated firms, the minimum indemnity level is set by the SRA — currently £2 million per claim for sole practitioners and partnerships, and £3 million for incorporated practices. Many firms carry cover well above the minimum depending on the areas of law they practise and the value of transactions they handle. Conveyancing, commercial property, and litigation practices, for example, often warrant higher limits given the potential scale of claims. Motts Insurance can help you assess the right level of cover for your firm’s risk profile.
A solicitors PI policy typically covers claims arising from negligent acts, errors, or omissions in the provision of legal services — including drafting errors, missed limitation dates, incorrect advice, and failure to follow client instructions. It covers the legal costs of defending a claim as well as any compensation or damages payable. Most policies also cover claims made by former clients, which is particularly relevant given that legal claims can arise years after the original work was completed.
PI insurance does not cover deliberate or dishonest acts, criminal conduct, or fines imposed by regulators. Bodily injury and property damage are generally excluded (these fall under public liability). Claims arising from business activities not disclosed on the policy, contractual liabilities beyond professional duty, and employment disputes between the firm and its staff are also typically excluded. We will always go through the policy terms with you so there are no surprises.
For legal practices, insurers consider the size of the firm, the areas of law practised, annual fee income, the firm’s claims history, and the level of indemnity required. High-risk practice areas such as conveyancing, immigration, and personal injury tend to attract higher premiums. Firms with a history of claims or regulatory interventions may find their options more limited — this is where an independent broker with access to specialist markets, as Motts Insurance has, can make a significant difference to the outcome.
Yes. Most PI policies are written on a claims-made basis, meaning the policy in force at the time a claim is made responds — regardless of when the original work was carried out. For solicitors, this makes run-off cover essential when a firm closes: without it, the practice would be unprotected against claims brought by former clients after the closure date. SRA rules require a minimum of six years’ run-off cover following cessation of practice. Motts Insurance can arrange run-off policies for closing firms.
Yes. Sole practitioner solicitors are required to hold PI cover in the same way as larger firms, and the SRA minimum indemnity level of £2 million per claim applies. Insurers assess sole practitioners on fee income, practice area, and claims history. Where a sole practitioner operates in a higher-risk area of law, specialist insurers may be needed. Motts Insurance works with a range of markets and can find appropriate cover for sole practitioners, including those who have had difficulty placing cover elsewhere.
For most legal practices, professional indemnity insurance premiums are treated as an allowable business expense and are tax deductible. You should confirm the position with your accountant or tax adviser, as the treatment can depend on how your practice is structured — as a sole trader, partnership, LLP, or limited company. In general, insurance taken out wholly and exclusively for the purposes of the business qualifies for relief.
The timescale depends on the complexity of the claim and whether it is disputed. Straightforward claims may be resolved within weeks; contested matters, or those involving significant sums, can run to months or longer. Your insurer will appoint solicitors to handle the defence, and you should be kept informed throughout. Motts Insurance can act as an intermediary if you have concerns about how a claim is being handled.
Notify your insurer or broker immediately — do not wait until a formal claim is issued. Most PI policies require prompt notification of any circumstance that might give rise to a claim, and failure to notify promptly can jeopardise your cover. Preserve all relevant files and correspondence, and do not discuss the matter with the client without guidance from your insurer’s appointed solicitors. Motts Insurance can help you through the notification process and liaise with your insurer on your behalf.
Yes, though your options may be more limited and the premium is likely to be higher. The key is working with an independent broker who has access to specialist and non-standard markets — insurers who understand the legal sector and are willing to consider firms with a claims history on their merits. Motts Insurance has placed cover for firms in this position and can approach the market on your behalf to find a competitive solution.
Run-off cover protects a legal practice against claims brought after the firm has ceased trading, in respect of work carried out while the firm was active. SRA rules require solicitors firms in England and Wales to hold a minimum of six years’ run-off cover following closure. Without it, former clients who suffer a loss as a result of the firm’s past work would have no recourse against an insurer. Motts Insurance can arrange run-off policies for retiring sole practitioners, dissolving partnerships, and closing firms of all sizes.
Your insurer or broker should contact you ahead of your renewal date — typically 60 to 90 days before expiry. It is worth reviewing your cover at each renewal rather than rolling over automatically: your firm’s fee income, practice areas, or risk profile may have changed, and a review ensures your indemnity level remains appropriate. If you are dissatisfied with your current insurer’s terms, Motts Insurance can approach the market on your behalf and present alternatives.
Yes. Motts Insurance is an independent broker with experience in arranging professional indemnity cover for solicitors and legal practices across South Wales and the UK. We have access to a range of insurers, including specialist markets for firms with complex needs, difficult claims histories, or high-risk practice areas. We offer personal, practical advice — not a call centre, and not an automated quote. Contact us on 029 2070 0635 to discuss your firm’s requirements. For professional indemnity insurance for other professions, please see our Professional Indemnity Insurance page.