Start-up Solicitors Professional Indemnity
What level of cover is required?
The level of cover required is determined by two factors to comply with the SRA.
The first is that firms established as a Partnership or Sole Practitioner must have a minimum of £2m of cover for each claim, whereas firms established as a Limited Liability Partnership or a Limited Liability Company must have a minimum cover of £3m for each claim.
The second factor relates to risk and your client requirements. If you anticipate undertaking work where the risk of a potential loss exceeds the minimum SRA level of cover, then it is advisable to obtain higher limits of cover to a more suitable level. It’s worth remembering (especially for commercial work) that some clients will insist on higher levels level of cover.
- Anticipated Fees greater than £30,000
- Over 5 years Post Qualified Experience
- Preferably a clean SRA record, with no disciplinary matters in the past
SRA Application Professional Indemnity Requirements
As part of the application process for the SRA, you must submit written evidence of the availability of compliant insurance cover.
We provide a fully compliant (and cost efficient) quotation for your SRA submission.
What premium should I expect to pay?
Solicitors Professional Indemnity Insurance average cost is one of the most significant costs to a firm. For an new start up firm with a good spread of work and with no past claims it can expect a premium in the region of 3% to 6% of anticipated turnover (with minimum premiums starting in the region of £3,000 plus Insurance Premium Tax).
Property/Conveyancing services sees the most claims and leads to the highest insurance premiums.
Useful Links:
Regulatory requirements to consider when Setting up a practice – SRA Direct Link
Solicitors Regulation Authority (SRA) – PI Guidance notes
