The Solicitors Regulation Authority (SRA) requires all firms to take out a minimum level of professional indemnity insurance (PII) cover. However, the principals of each firm will need to form an individual assessment about whether this minimum level of cover is sufficient for their practice.
This guide is intended to assist solicitors by outlining a non-exhaustive list of factors that should be considered when assessing the adequacy of their PII arrangements and the potential exposure of the firm to risk.
The guide highlights situations where it may be prudent to purchase top-up or excess layer cover and the potential pitfalls for firms and individual principals if they fail to select the right level of professional indemnity insurance.
It is not intended to replace a firm’s individual assessment of the adequacy of its individual PII policies or advice provided by insurance brokers.