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Aipedia: Chartered legal executives
Usually yes for the compulsory layer: the CILEX £2m minimum applies regardless of the policy wording, so liability for AI-assisted negligence cannot be excluded or limited below it. Above £2m, and for fines or fee disputes, the position depends on the policy.
Part of: AI in Chartered legal executives
In short
CRL-authorised entities must hold PI with a qualifying insurer before practising. Through the Qualifying Insurers Agreement, the £2m minimum applies regardless of the actual wording, and qualifying insurers must offer the CILEx Minimum Wording. CRL has made no statement on AI and PI, and AI is not a separate category of error: a negligence claim from AI-assisted work would usually be handled like any other. Cover above £2m is top-up on the insurer's own terms and may carry AI wording. CILEX lawyers employed in SRA firms are usually covered by the firm's policy under the SRA minimum terms, which contain no AI exclusion.
Under the CILEx Professional Indemnity Insurance Rules, CRL-authorised entities, including CILEX practitioner firms, must have PI in place before they practise. CRL's PI page explains that the minimum of £2 million is set through the Qualifying Insurers Agreement and applies regardless of the actual wording of the policy; liability cannot be excluded or limited below £2m. Qualifying insurers must offer the CILEx Minimum Wording, and CRL publishes a list of qualifying insurers. The Legal Services Board approved changes to the minimum wording in a decision notice of 22 June 2018.
In practice this means a negligence claim arising from AI-assisted work, such as a missed estate asset, an undervalued injury claim or a struck-out pleading, would usually be considered within the compulsory layer on the same footing as any other error, subject to the policy terms and conditions such as notification.
Nothing specific. CRL's AI position page says firms and lawyers remain responsible for their decisions and actions when using AI, and its PI page does not mention AI or cyber. CRL has said it will review its standards, codes and guidance on AI, so this may change. For the regulatory picture see CILEx Regulation's approach to AI.
Cover above £2m is outside the PI Rules and may come from any insurer on different terms. That is where AI-specific wording is most likely to appear, for example exclusions for losses caused by automated systems, conditions requiring human review, or questions about AI use on the proposal form. Firms that buy higher limits for large estates, litigation or commercial work should read the top-up wording as carefully as the primary policy. See top-up and excess layer PI and AI exclusions and clauses.
Chartered legal executives employed in solicitor firms are usually covered by the firm's policy under the SRA Indemnity Insurance Rules and minimum terms and conditions. Those require at least £3m for recognised and licensed bodies and £2m in other cases, with defence costs in addition. The minimum terms contain a closed list of permitted exclusions, and none refers to AI. Insurers may exclude certain cyber and data protection losses, but civil liability cover must be preserved. See the SRA minimum terms and CILEX lawyers using AI in SRA firms.
See AI client care letters and costs estimates and AI research for CILEX advocates.
The SRA's 2023 Risk Outlook on AI described the insurance market's approach to legal AI as still emerging and advised firms to engage with their insurers. That is sound advice for CILEX firms too. At renewal, or if your use of AI changes materially, be ready to explain:
Our guide on AI use and what to document for PI has a fuller checklist, and does PI cover AI mistakes? explains the general position across professions.
Apex arranges PI for chartered legal executives and CILEX practitioner firms. A broker can review your primary and top-up wordings, explain how they treat AI-assisted work, and help you present your controls to insurers. See the AI for CILEX lawyers hub.
Not within the compulsory £2m layer. CRL says the minimum applies regardless of the actual wording and liability cannot be excluded or limited below £2m. Top-up cover above £2m is outside the Rules and may carry AI-specific terms.
Answer proposal questions fully and accurately, and consider whether a significant change in how you work should be disclosed. Explaining your AI tools, review process and data controls helps insurers understand the risk and can avoid disputes later.
Usually the firm's policy under the SRA minimum terms, which contain no AI exclusion. Regulatory consequences may still arise for you individually under the CILEx Code, and fines are usually uninsured.
It can be both. A client's claim for loss may fall under PI, subject to the policy terms, while your own response costs and data restoration usually sit under cyber cover. The answer depends on the wordings, so check both.
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.
Start a PI quote Request a callbackApex 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.
