Professional Indemnity Insurance for Paralegals
Specialist Professional Indemnity Insurance for freelance and independent paralegals providing legal advice, support and other professional legal services.
Whether you provide services directly to clients or work on a consultancy basis for solicitors, businesses or other organisations, PLB can help arrange Professional Indemnity Insurance appropriate to your activities.
Risk Exposure
What is a Paralegal?
A paralegal is a legal professional undertaking substantive legal work. The term is not simply another term for a trainee solicitor — many paralegals develop specialist careers in their own right.
In England and Wales, “paralegal” is not itself a regulated occupation, although particular legal activities may require authorisation or be subject to separate regulation. The regulatory information on this page relates principally to England and Wales, as different regimes apply in Scotland and Northern Ireland.
Paralegals may work independently, as consultants, for solicitors or other legal practices, directly for businesses, or — where legally permitted — directly for members of the public.
Professional Indemnity Insurance can provide protection against claims arising from alleged mistakes or negligence in professional services, including incorrect or allegedly negligent advice, document or drafting errors, failure to follow instructions, missed deadlines, loss of documents or information, and allegations that professional services caused a client financial loss.
There is no universal statutory requirement for every independent paralegal undertaking non-reserved work to hold Professional Indemnity Insurance. However, cover may be required by professional membership or licensing arrangements, clients, contractual arrangements, or organisations instructing the paralegal, and may also provide important protection for an independent practice. All cover remains subject to underwriting acceptance and the terms, conditions and exclusions of the policy.
Regulatory Framework
Reserved and Non-Reserved Legal Activities
Many legal services are non-reserved, but certain legal activities are reserved and may only be undertaken by appropriately authorised or exempt individuals. Purchasing Professional Indemnity Insurance does not give the applicant authority to undertake reserved legal activities.
Non-Reserved Legal Activities
Many legal services are non-reserved and may be undertaken by paralegals and other legal professionals without requiring the same authorisation as reserved activities. It is important that the services you undertake are fully disclosed so that insurers can consider and agree the appropriate scope of cover.
Reserved Legal Activities
In England and Wales, six categories of legal activity are reserved under the Legal Services Act 2007: rights of audience; conduct of litigation; reserved instrument activities; probate activities; notarial activities; and administration of oaths. These may only be undertaken by appropriately authorised or exempt individuals. Professional Indemnity Insurance does not confer authority to undertake reserved legal activities. If you are in any doubt about whether your activities are reserved, you should seek appropriate advice.
Separately Regulated Services
Some activities can be separately regulated even where they are not one of the six reserved legal activities. Particular care should be taken with immigration advice or services, insolvency work, and regulated claims-management activities. Certain other services, including some financial services, may also require separate regulatory permissions. The regulatory position should be established before these services are undertaken.
Scope of Cover
Who Can We Consider?
Subject to underwriting acceptance, PLB can consider arranging Professional Indemnity Insurance for a range of paralegal professionals, including:
Illustrative Claims Scenarios
Typical Claims Scenarios
These examples are illustrative only and do not constitute confirmation that any particular claim would be covered. Cover is subject to the insurer’s policy wording, terms, conditions, exclusions and the circumstances of the individual claim.
Incorrect Legal Advice
A paralegal provides advice on a legal matter that is subsequently alleged to be incorrect or negligent. The client claims to have suffered financial loss as a result and pursues a Professional Indemnity claim against the paralegal.
Document Drafting Error
A paralegal prepares a legal document containing a drafting error that causes the client to lose a contractual right. The client alleges that the error caused financial loss and brings a Professional Indemnity claim.
Missed Deadline
A paralegal fails to diarise or meet a critical deadline in a legal matter, causing the client to lose an opportunity to pursue or defend a claim. A Professional Indemnity claim is pursued for the resulting losses.
Why Choose PLB
Specialist Professional Indemnity Brokers for Paralegals
Sector Expertise
We understand the specific professional risks facing paralegals and arrange cover that responds to your actual exposures.
Market Access
Access to specialist Professional Indemnity underwriters and markets with experience in this sector.
Personal Service
Deal directly with experienced PI specialists who know your sector — not a call centre or an algorithm.
Frequently Asked Questions
Paralegals — Common Questions
Get Started
Request a Quotation
Complete our specialist proposal form and a Professional Indemnity broker will review the information provided and we aim to contact you within one working day.