Aipedia: Conveyancers and property lawyers

Does conveyancing PI cover AI mistakes?

Aipedia, by the Apex broking team · Last reviewed 2026-10-27

Usually yes: neither the CLC nor the SRA minimum terms mention AI, so a negligence claim caused by an AI error is generally treated like any other, subject to the policy terms. The pinch points are fraud, email and e-signature exclusions and any top-up layers.

Part of: AI in Conveyancers and property lawyers

In short

CLC practices must hold PI with a minimum of £2m for each and every claim, on Minimum Terms dated 1 July 2022 that contain no AI wording. Clause 8.13 affirms cover for listed computer, data and malware events, while cl.5.13 to 5.15 allow exclusions for electronic documents, data corruption and fraudulent use of e-signatures or external email after discovery. SRA firms hold £2m or £3m on SRA Minimum Terms, whose closed list of exclusions contains no AI exclusion. AI exclusions are possible in top-up layers and cyber policies, so check those wordings and document how AI is used.

The CLC position

For CLC practices, PI is compulsory as a licence condition. Cover is placed with CLC participating insurers under a Participating Insurers Agreement in place since June 2016, on the CLC Minimum Terms and Conditions dated 1 July 2022, and under the PII Code (Annex H). Key features:

a minimum of £2m for each and every claim;
no mention of AI anywhere in the Minimum Terms;
cl.8.13 Cyber-Related Losses Affirmation: indemnity is not restricted for listed computer, data and malware events;
permitted exclusions in cl.5.1 to 5.15, including 5.13 electronic documents, 5.14 data corruption and viruses (with an exception for wholly independent third parties where transmission was inadvertent) and 5.15 fraudulent use of an electronic signature or external email after the insured discovered, or should have discovered, the misuse;
six years' run-off at no extra cost when a practice closes, at £2m aggregate (cl.8.10 to 8.11).

The SRA position

Solicitor conveyancers are insured under the SRA Indemnity Insurance Rules and the SRA Minimum Terms, at £3m any one claim for recognised bodies and licensed bodies and £2m in other cases. The permitted exclusions in cl.6 are a closed list. None refers to AI. Insurers may exclude cyber acts, system failures and breaches of data protection law, but cover for civil liability, including Accounts Rules remediation, and defence costs must be preserved. See SRA minimum terms explained and whether solicitors' PI covers AI mistakes.

How AI errors are usually treated

A missed covenant from an AI title summary, a search entry dropped by a summariser or an onerous lease term an extraction tool misread are all negligence claims about the conveyancing service. Within the compulsory layer they are usually treated like any other claim, subject to the excess and policy terms. The tool is not a separate insured or a separate risk; the firm's advice is.

The harder cases involve fraud and email. If a client's money is lost through AI-assisted phishing, cl.5.15 may allow a CLC insurer to exclude losses after the firm discovered, or should have discovered, misuse of its email. The firm's own costs usually need a cyber policy. See AI phishing and completion fraud.

Above the minimum, top-up or excess layers and cyber policies are not bound by the minimum terms and may contain AI or technology exclusions. See AI exclusions in insurance policies and top-up PI for solicitors.

Renewal and disclosure

On CLC terms, an insurer's non-renewal notice is due by 31 March and the renewal proposal by 1 June (cl.1.26.1), with an extended period of up to 90 days (cl.1.26.2). The CLC's AI and Technology Guidance prompts practices to consider telling PII and cyber insurers before deploying technology, and the CLC notes that 2024 Annual Regulatory Return responses showed technology had no impact, or a beneficial impact, on premiums.

Whatever the proposal form asks, the duty of fair presentation applies. Describe which tasks use AI, how outputs are checked and what fraud controls are in place. See CLC PI requirements.

What to document

A register of AI tools, their purpose and the data they process.
Risk and impact assessments for each tool, as CLC Principle 8 suggests.
Who reviewed each AI output on a file and what they changed.
What clients were told about AI use (see telling clients you use AI).
Incident logs for tool errors and suspected fraud.
Provider contracts, including liability caps and data terms.

More detail is in AI use and your PI: what to document and does PI cover AI mistakes.

How Apex helps

Apex arranges PI for licensed conveyancers and solicitor conveyancers. A broker can review your primary, top-up and cyber wordings for AI and fraud gaps. See AI in conveyancing.

Sources

Frequently asked

Can a CLC insurer exclude AI errors?

The CLC Minimum Terms set out the permitted exclusions in cl.5.1 to 5.15, and none of them refers to AI. A negligence claim caused by an AI error is therefore usually treated like any other within the compulsory cover, subject to the terms.

What is the CLC email and e-signature exclusion?

Clause 5.15 lets insurers exclude losses arising from fraudulent use of an electronic signature or external email after the insured discovered, or should have discovered, the misuse. It is relevant to AI-assisted phishing and payment redirection.

Do top-up policies have to follow the minimum terms?

Top-up and excess layers are not bound by the minimum terms in the same way and may include AI or technology exclusions. Check those wordings, and any cyber policy, with your broker.

Will using AI increase my conveyancing premium?

The CLC reports that 2024 Annual Regulatory Return responses showed technology had no impact, or a beneficial impact, on premiums. Each insurer rates firms individually, so present your controls clearly at renewal.

Check your PI covers how you use AI

Tell us about your firm and the work you do. A broker will review how your current PI treats AI-assisted work, or arrange new cover. No fee for a quote. Or call 0117 325 0027.

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Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, company number 07014570. This page is general information about how AI is used in the profession and how insurance may respond. It is not legal, regulatory or insurance advice on your circumstances, and it does not guarantee that cover will be available or on what terms.