Solicitors Insurance
Protect your law firm from negligence claims, missed limitation dates and data breaches with cover designed for legal professionals.
Get in touchWhat is solicitors insurance?
Solicitors insurance is a specialist professional indemnity policy that protects law firms and individual solicitors from the risks of providing legal advice and services. It typically includes professional indemnity, public liability and cyber liability.
Legal work carries significant professional liability risks. A missed limitation date, incorrect conveyancing search, or flawed legal advice can result in claims running into millions of pounds.
Find cover options from specialist insurers who specialise in covering law firms, ensuring your cover meets the minimum terms required by the Solicitors Regulation Authority.
Professional Indemnity
Covers claims arising from negligent legal advice, errors or omissions in your work.
Cyber Liability
Covers data breaches, ransomware attacks and loss of sensitive client information.
Public Liability
Covers injury or property damage claims from clients visiting your offices.
Employers Liability
Required by law if you employ staff, covering workplace injury and illness claims.
Who needs solicitors insurance?
High street solicitors
Providing a range of legal services to individuals and businesses
Commercial law firms
Advising businesses on contracts, disputes and corporate transactions
Conveyancing solicitors
Handling residential and commercial property transactions
Family law practices
Advising on divorce, custody and financial settlements
Personal injury firms
Acting for claimants in injury and negligence cases
Criminal defence solicitors
Representing clients in criminal proceedings
SRA regulation and mandatory insurance for solicitors
Solicitors in England and Wales are regulated by the Solicitors Regulation Authority (SRA). Professional Indemnity Insurance is mandatory for all practicing solicitors and law firms. The SRA sets compulsory minimum cover requirements of £2m for most sole practitioners and £3m for larger firms. Failure to maintain appropriate cover results in immediate suspension from practice.
The SRA requires all solicitors' firms to hold a Master Professional Indemnity Insurance policy that covers all fee earners. Each partner or sole principal must be covered; if an individual solicitor operates independently, their own professional indemnity policy must comply with SRA requirements.
Solicitors must also comply with SRA Accounts Rules, which require separate Client Money insurance (also called Fidelity Guarantee or Crime insurance) to cover theft, defalcation, or misuse of client funds. This is separate from professional indemnity and is a distinct SRA requirement.
The SRA also requires Run-Off Cover (also called Tail insurance) for up to six years after a firm closes or a solicitor leaves practice. This protects clients against claims made after the firm has ceased operations. The cost and terms of run-off cover must be considered when planning firm closures or retirement.
How much does solicitors insurance cost?
£400 – £1,200 per year for sole practitioners; law firms with multiple partners typically pay £2,000 – £6,000
Real claims: what solicitors insurance covers
A solicitor missed the limitation deadline for issuing a personal injury claim on behalf of a client, resulting in the claim becoming statute-barred. The client's potential claim was worth £120,000, but could no longer be pursued.
Professional indemnity covered the solicitor's liability to the client for the full value of the lost claim, less any contribution from the client, and the solicitor's legal defence costs.
£125,600 total — £120,000 lost claim value, and £5,600 legal defence and settlement costs
A solicitor failed to disclose a material conflict of interest in a commercial transaction. The client later discovered the conflict and suffered a loss of £85,000 as a result of the compromised legal position.
Professional indemnity covered the solicitor's liability for the conflict and the client's resulting loss, plus costs of remedial legal action and defence.
£92,800 total — £85,000 client loss compensation, and £7,800 in remedial legal and defence costs
A solicitor's conveyancing error resulted in an incorrect property charge being registered at the Land Registry. Correcting the error required expensive rectification and the client incurred losses from the period during which the property was not properly secured.
Professional indemnity covered the cost of correcting the Land Registry error, the client's compensation for losses during the period the property was at risk, and the solicitor's legal costs.
£38,900 total — £28,000 rectification and compensation, and £10,900 legal and Land Registry application fees
WHY CECIL
Built differently.
Meets SRA minimum terms
Get options from specialist insurers to find policies that meet the Solicitors Regulation Authority minimum terms and conditions, so you can be confident your cover is compliant.
Cyber cover for sensitive data
Law firms are prime targets for cyber attacks. Cecil makes sure your policy includes robust cyber liability to protect client data.
Run-off cover available
When solicitors retire or close their practice, run-off cover is essential. Cecil finds policies that include or offer affordable run-off options.
Competitive quotes for all firm sizes
Whether you are a sole practitioner or a multi-partner firm, Get your cover options from solicitors insurance specialists.
Common questions about solicitors insurance
Do solicitors need professional indemnity insurance?
Yes, professional indemnity insurance is compulsory for solicitors. The Solicitors Regulation Authority requires all practising firms to hold cover that meets minimum terms.
What level of professional indemnity do solicitors need?
The SRA requires minimum cover of £2m for incorporated practices and £3m for sole practitioners incorporated as recognised bodies. Many firms carry higher limits.
Do solicitors need cyber insurance?
Law firms handle highly sensitive client data and are frequent targets for cyber criminals. Cyber liability covers breach notification costs, forensic investigation and regulatory fines.
What is run-off cover for solicitors?
Run-off cover provides professional indemnity protection after a firm closes. The SRA requires six years of run-off cover to protect against claims arising from past work.
Does solicitors insurance cover missed court deadlines?
Yes, professional indemnity covers claims arising from missed limitation dates, filing deadlines and other time-critical errors that cause a client a financial loss.
Is professional indemnity insurance mandatory for solicitors in the UK?
Yes, the SRA requires all practicing solicitors and law firms to hold mandatory professional indemnity insurance. Sole practitioners must maintain at least £2m cover; larger firms typically need £3m or more. Failure to maintain appropriate cover results in suspension from the Law Society and loss of practice rights.
What is Client Money insurance and is it separate from professional indemnity?
Yes, Client Money insurance (Fidelity Guarantee) is a separate SRA requirement that covers theft, fraud, or misuse of client funds held in your client account. It is distinct from professional indemnity. Most solicitors arrange both policies together, but they are separate covers with separate claims.
Do solicitors need to arrange run-off insurance if they retire or close their firm?
Yes, the SRA requires solicitors to arrange run-off cover for up to six years after the firm closes or the solicitor leaves practice. This covers claims made after you have stopped practicing. The cost of run-off insurance should be factored into retirement planning; it is often more expensive than active practice cover.
Are solicitors liable if a client ignores their legal advice or recommendations?
No, you are not liable if a client chooses to disregard your advice. Your liability arises only if your advice is negligent or falls below the standard of a competent solicitor. If you provide clear advice and the client chooses to ignore it, that is a client decision, not professional negligence.
What happens if a solicitor breaches confidentiality or client privilege?
A breach of confidentiality can result in professional negligence claims and regulatory action by the SRA. Professional indemnity covers claims by the client for losses arising from the breach — for example, if disclosed information causes the client to lose a business opportunity. The SRA may also initiate disciplinary proceedings separately.
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