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Aipedia: Solicitors and law firms
Usually yes: the SRA minimum terms have a closed list of permitted exclusions and none refers to AI, so negligent AI-assisted work is normally covered like any other claim. Top-up layers, cyber policies and regulatory fines are where gaps can appear.
Part of: AI in solicitors and law firms
In short
Solicitors' PI must meet the SRA Minimum Terms and Conditions. They require civil liability cover of at least £3m any one claim for recognised and licensed bodies and £2m otherwise, unlimited defence costs, and only the exclusions on a closed list. That list includes cyber and data protection matters and fines, but nothing about AI. On Apex's reading, an AI exclusion is not available in the compulsory layer. Top-up and excess layers are not bound by the MTC and could add AI terms. Insurers may ask about AI use at renewal, so documenting controls matters.
Under the SRA Indemnity Insurance Rules, an authorised body must hold qualifying insurance with a participating insurer (rule 2.1), adequate and appropriate for its current and past practice (rule 3.1). The Minimum Terms and Conditions in Annex 1 set the floor:
| MTC clause | Requirement | Relevance to AI |
|---|---|---|
| 1.1 | Cover for civil liability arising from private legal practice | Negligent AI-assisted work is still civil liability |
| 2.1 | At least £3m any one claim (recognised and licensed bodies), £2m otherwise | Large AI-driven claims may exceed the minimum |
| 2.2 | Defence costs unlimited, subject to proportionate limitation (2.3) | Defending an AI error claim is funded on top |
| 3 | Excess does not reduce the limit or apply to defence costs | Same mechanics for AI claims |
| 6 | Closed list of permitted exclusions | No AI exclusion on the list |
Clause 6 lists what insurers may exclude: prior cover, death or bodily injury, property damage, partnership disputes, employment, debts and trading, fines and penalties, dishonesty, directors' and officers' liability, war, terrorism and asbestos, sanctions, and cyber, infrastructure and data protection law. None refers to AI. The cyber exclusion can remove cover for cyber acts, computer system failure, malware and data protection breaches, but civil liability and defence costs must be preserved. On Apex's reading, an AI-specific exclusion is not available in the compulsory layer. See the SRA MTC permitted exclusions.
So a client claim for a missed clause found by AI, a fake citation or a wrong AI-drafted advice letter is usually treated like any other negligence claim, subject to the policy terms.
Many firms renew on 1 October. The SRA's 2023 Risk Outlook said the insurance market's approach to legal AI is "still emerging" and that firms should engage with their insurers, and the Law Society says to ask your insurer whether your existing policy covers AI use. Firms should be ready to explain which tools they use and for what work, whether client data goes into them, how outputs are checked and supervised, and how they responded to the SRA's August 2026 warning notice. Accurate answers matter: what you disclose at renewal can affect how a later claim is handled. See the 1 October renewal walkthrough.
Illustrative: a firm's AI contract review tool applies an outdated playbook across a client's supply contracts. Several contracts later produce losses. The primary policy responds subject to its aggregation wording, but the claims exceed the primary limit, and the firm discovers its top-up layer contains wording on automated tools that it had not reviewed.
See what to document about AI use and does PI cover AI mistakes in general.
Apex arranges PI for solicitors and law firms, and a broker can compare your primary and top-up wordings for AI terms before renewal. See the AI in law firms hub, SRA AI warning notice explained and AI, confidentiality and privilege.
Not under the SRA minimum terms as they stand. The permitted exclusions are a closed list and none refers to AI. Insurers may exclude cyber and data protection matters, but must preserve civil liability cover and defence costs.
Yes, potentially. Top-up and excess layers are not bound by the MTC and can include their own exclusions or conditions. Read the wording or ask your broker to compare it with the primary layer before renewal.
Usually not. Fines and penalties are a permitted exclusion under the SRA minimum terms. Defence of a related civil claim and any damages payable to a client are a separate matter, usually within cover subject to the policy terms.
Answer renewal questions accurately and disclose material changes in how you work. The SRA and Law Society both suggest engaging with your insurer about AI. Clear records of your controls help both at renewal and if a claim arises.
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.
