Do chartered legal executives need professional indemnity insurance?

Reviewed by Matthew Bartlett, Director, Apex Insurance Brokers Limited · Last reviewed 2026-08-05

A Chartered Legal Executive is a qualified lawyer, admitted as a Fellow of CILEX (the Chartered Institute of Legal Executives) and, where they practise independently, regulated by CILEx Regulation Limited (CRL). Because you give legal advice on which clients rely, the question is rarely whether you need PI — it is which route provides it and whether the limit is adequate. This page explains the three triggers that matter.

Where the requirement comes from

There are three distinct sources of the obligation. Any one of them can make PI mandatory for you.

Regulatory requirement: CILEx Regulation

CILEX is an approved regulator under the Legal Services Act 2007, with regulation carried out independently by CILEx Regulation Limited. If you hold practice rights — for example in reserved areas such as conveyancing, probate, litigation or immigration — or if you run or work in a CILEX-authorised entity, CRL requires professional indemnity cover that meets its published minimum terms and conditions.

That means the policy is not just about having a limit of indemnity. CRL’s minimum terms typically govern the scope of cover, run-off provisions and how claims are handled, so an off-the-shelf commercial policy may not satisfy them. Before you rely on a policy for CRL purposes, check it against the current requirements published by CILEx Regulation. If you are not authorised by CRL, you are not bound by those specific minimum terms — but the other two triggers below usually still apply.

Employed within a firm

Most Chartered Legal Executives work inside law firms regulated by the Solicitors Regulation Authority or by CILEx Regulation. In that situation the firm carries compulsory PI insurance that covers the work of everyone it employs, including its legal executives, while they act for the firm’s clients.

Two cautions. First, that cover protects you only for work done in your role at the firm — not for private legal work, favours for friends, or consultancy you take on the side. Second, if you leave, the firm’s policy no longer responds to new circumstances; only work done while covered is protected, and even then usually only while a policy (or run-off cover) remains in force. If you go independent, the responsibility to arrange cover moves to you.

Contractual requirements

Even where no regulator compels it, the party paying you often will. If you work as a consultant, locum or freelance legal executive, or sit on a referral panel, the engagement terms routinely require you to hold PI to a stated minimum — commonly expressed as a limit such as £1m, £2m or £5m each claim, sometimes on an aggregate basis. Panels for lenders, insurers and large corporate clients set their own thresholds, and you may be asked for evidence of cover before instructions begin.

Read these clauses closely. A contract may specify not only the limit but the basis of cover (each claim versus aggregate), a requirement to maintain run-off after the retainer ends, and an obligation to notify the client of any material change. Agreeing to a limit you do not actually hold is a breach you can avoid by arranging cover that matches the contract before you sign.

The specific service risk

Chartered Legal Executives specialise — conveyancing, wills and probate, family, litigation, personal injury, employment. That specialism shapes the risk. A missed limitation date, a defective title, an error in a will or a misjudged step in litigation can cause a client direct financial loss, and the sums involved can dwarf the fee you earned. PI insurance is the mechanism that meets a valid negligence claim; without it, the liability falls on you personally.

Key features to check for your area of practice:

• Civil liability wording — responds to negligence, breach of duty and related claims arising from your legal services.
• Claims-made basis — PI responds to claims made during the policy period, which is why continuous cover and run-off matter so much.
• Retroactive date — make sure past work is picked up, not excluded by a recent start date.
• Run-off cover — protects you for past advice after you retire, close, or leave a firm.
• Defence costs — even an unfounded claim costs money to defend; check how costs sit against the limit.

Common questions

I’m employed and covered by my firm’s policy — do I still need my own?

Not for the work you do for that firm. You would only need your own policy for legal work outside your employment, or if you go independent. Confirm in writing what the firm’s cover does and does not include.

Does CILEX or CILEx Regulation set a minimum level of cover?

CILEx Regulation sets minimum terms and conditions for PI held by the practitioners and entities it authorises. Because these are updated periodically, check the current requirements published by CILEx Regulation rather than relying on a figure from memory.

What happens to old work when I retire or close my practice?

Because PI is claims-made, a claim about past advice needs a live policy or run-off cover to respond. Arrange run-off when you stop practising so historic work stays protected.

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.