Start-up Solicitors Professional Indemnity
What level of cover is required?
The level of cover required is determined by two factors. 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 more suitable level. It’s worth remembering (especially for commercial work) that some clients will enquire as to your level of cover purchased and may only be willing to instruct a firm that they consider carries adequate levels of insurance.
Solicitors we can help
- Anticipated Fees greater than £20,000
- Over 5 years Post Qualified Experience
- Preferably a clean SRA record, with no disciplinary matters in the past
It’s essential that start-up Solicitors obtain the right advice and guidance from a specialist Solicitors Professional Indemnity Broker from the beginning.
SRA Application PI requirements:
As part of the application process for the SRA , you must submit written evidence of the availability of compliant insurance cover. We provide this and general advice about ensuring your submission to PI Insurers ensures a fully compliant (and cost efficient) submission is included within your business plan.
What sort of premium should I expect to pay?
Professional Indemnity Insurance is one of the most significant costs to a firm. For an average firm with a good spread of work and with no 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 sees the most claims and leads to the highest insurance premiums with the highest rates and higher minimum premiums.
Regulatory requirements to consider when Setting up a practice – SRA Direct Link
Solicitors Regulation Authority (SRA) – PI Guidance notes