Freelance Solicitors Professional Indemnity Insurance – Market Overview
Since the SRA rule changes in late 2019, a new route for self-employed solicitors was introduced under the title of Freelance Solicitor. This allows solicitors to practise on their own account without needing to set up a traditional law firm, provided certain criteria are met.
At the same time, the professional indemnity (PI) insurance market was facing significant challenges. A thematic review by Lloyd’s of London—which has historically provided much of the capacity for solicitor PI insurance—revealed approximately £347 million in losses across the legal sector over the five years to 2019, with around two-thirds of those losses relating to PI insurance.
As a result, several insurers withdrew from the solicitors’ PI market, creating a shortage of available cover and a difficult landscape for both new and existing practices. The impact of the pandemic in 2020, with many underwriting teams working remotely and heightened risk aversion across the board, further limited the entry of new insurers willing to take on solicitors’ risks—especially freelance models, which were still relatively untested.
How We Can Help
At Professional Liability Brokers, we specialise in sourcing Professional Indemnity Insurance for Freelance Solicitors. Whether you’re setting up under the SRA’s freelance model or launching a traditional regulated practice, we understand the market and can help you:
- Navigate the eligibility criteria set by the SRA
- Access the most suitable and competitive PI insurance providers
- Secure appropriate cover for both reserved and non-reserved legal work
- Advise on regulatory issues and help ensure ongoing compliance
We work closely with insurers who are active in this space and understand the nuances of the freelance model. Our goal is to make your start-up journey as smooth as possible, while protecting your practice from the outset.
For more details on freelance rules, visit the SRA’s official guidance on Freelance Solicitors. To notify the SRA of your intention to practise as a freelancer, please use their Freelancer Notification page.
How much does Professional Indemnity Insurance cost for Freelance Solicitors?
Answer:
The cost of PI insurance for freelance solicitors typically starts from around £1,200–£1,500 per year for lower-risk practices. Your premium will depend on factors such as the areas of law you practise, your claims history, and your projected turnover. Higher-risk areas such as commercial litigation or property may attract higher premiums. We help match you with the most suitable insurer for your specific risk profile.
Do I need PI insurance if I'm not offering reserved legal services?
Answer:
Yes, even if you only provide non-reserved legal services, professional indemnity insurance is strongly recommended. It protects you against claims of negligence, errors, or omissions—regardless of whether the services are reserved or not. Some of your clients may still expect cover to be in place.
What does Professional Indemnity Insurance for Freelance Solicitors cover?
Answer:
PI insurance typically covers legal costs and damages arising from claims of professional negligence, breach of duty, or errors in your legal work. Policies may also include cover for defamation, loss of documents, and claims made by third parties. We help ensure your policy reflects the nature of your practice.
Can I employ staff as a freelance solicitor?
Answer:
If you are offering reserved legal services, the SRA rules do not permit you to employ staff. However, if your practice only provides non-reserved legal services, you may employ support staff and fee earners. Always check with the SRA to confirm your status before hiring.
What information do I need to get a quote?
Answer:
To obtain a PI quote, you’ll typically need to provide your practising certificate, business plan or summary of services, estimated turnover, claims history (if any), and an outline of the types of legal work you undertake. We’ll guide you through the full process and help prepare your submission.
