CILEX Regulation professional indemnity insurance requirements
Reviewed by Matthew Bartlett, Director, Apex Insurance Brokers Limited · Last reviewed 2026-08-05
Who CILEX Regulation regulates
CILEX Regulation Limited (CRL) is the independent regulatory arm of CILEX, the Chartered Institute of Legal Executives. It is an approved regulator and licensing authority under the Legal Services Act 2007, overseen by the Legal Services Board. CRL regulates individual CILEX members — including CILEX Lawyers and CILEX Practitioners — and the entities that CILEX authorises to carry out reserved and other legal activities.
If you are an authorised entity, or an individual practising through a CRL-regulated firm, professional indemnity insurance (PII) is a condition of your authorisation. It protects your clients if a claim is made against you for a mistake, oversight or breach of duty in the legal work you carry out — and it protects your own balance sheet from a defence and settlement you could not otherwise fund.
How the PII requirement is structured
Rather than fixating on a single headline number, it helps to understand the shape of what CRL requires. Legal-sector PII rules across England and Wales tend to share a common structure, and CRL's approach follows the same logic:
- A minimum level of cover. CRL sets a floor for the sum insured that authorised entities must carry. The appropriate limit for your firm may be higher than the minimum, depending on the value and risk of the work you do.
- Minimum policy terms. The requirement is not just about the amount — it is about the wording. CRL specifies terms the policy must contain so that cover is meaningful and cannot be hollowed out by narrow exclusions.
- Run-off cover. When a firm closes or ceases to be authorised, claims can still arrive years later. Run-off cover keeps protection in place for a defined period after you stop trading.
- A qualifying insurer or acceptable market. Cover generally needs to be placed with an insurer that meets the regulator's standards, so that clients are protected by a financially sound counterparty.
The precise minimum sum insured, run-off duration and any turnover- or fee-linked features are set out in CRL's own rules and can change. Because we do not want to quote a figure that may be out of date, treat the numbers as something to verify at source rather than assume.
Not sure whether your cover meets CRL's current terms? We will read your schedule against the requirement and tell you plainly.
Get a PI quote →Why you should check the current rules
Legal services regulation in England and Wales is not static. Regulators periodically review their PII arrangements, and the wider landscape for who regulates CILEX professionals has itself been the subject of consultation in recent years. That is exactly why this page describes the structure of the requirement rather than pinning down a specific figure or date.
Before you renew or place cover, confirm the current position from CRL's published rules and guidance, or ask a broker who tracks the sector to do it for you. A policy that met the requirement three years ago may not meet it today, and an authorisation condition is not something you want to fall short of by accident.
Choosing an appropriate limit of indemnity
The regulatory minimum is a floor, not a target. The right limit for your firm depends on the nature of your work, the values involved and your claims exposure. As a general framework, brokers and firms often think in terms of tiers:
| Illustrative limit | Typically suits |
|---|---|
| £1m | Smaller practices with lower-value matters, where this meets or exceeds the regulatory minimum |
| £2m | Firms handling higher-value work or more sensitive advice areas |
| £5m+ | Firms with substantial transactions, property or estate values, or higher aggregate exposure |
These bands are illustrative options only. Whether the minimum is expressed per claim, in the aggregate, or with an inner limit matters as much as the headline figure — which is another reason to read your wording carefully. If in doubt, err towards a limit that reflects the largest single matter you could realistically be blamed for, not the average one.
What good cover looks like in practice
Beyond meeting the regulatory terms, a well-constructed PII policy for a CRL-regulated firm should give you confidence on the points that actually decide claims:
- A limit and basis (each claim vs aggregate) suited to your workload.
- Clear, workable run-off provisions for the day you eventually stop trading.
- An excess you can afford to fund if a claim lands.
- Defence costs handled in a way that does not quietly erode your limit.
- An insurer that meets the regulator's standards and will still be there at claim time.
Getting these right is where a specialist broker earns their place. We place cover for regulated professionals and will make sure your policy answers to CRL's requirement — start a quote here.
Common questions
Is PII compulsory for CILEX-authorised entities?
Yes. Holding professional indemnity insurance that meets CRL's minimum terms is a condition of authorisation for the entities CILEX Regulation authorises to deliver legal services. Trading without compliant cover puts your authorisation at risk.
What is run-off cover and do I need it?
Run-off cover continues to protect you against claims arising from past work after your firm closes or ceases to be authorised. Because legal claims can surface years later, run-off is a standard and important part of the requirement — plan for it rather than treating it as an afterthought.
Where do I find the exact minimum limit CRL requires?
The current figures are set out in CILEX Regulation's published rules and guidance, which can be updated. Check them directly at source, or ask a broker to confirm the present requirement and check your schedule against it before you rely on it.
Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority (FRN 724952). This guide is general information, not advice on a specific policy or a substitute for your policy wording.