Handling a claim · Partners
How to handle a PI claim as a partner
Reviewed by Apex Insurance Brokers (FCA FRN 724952) · Published 15 July 2026
A PI claim tests the firm's operations and the partners' personal composure. Getting the process right protects the firm; getting it wrong compounds the problem.
Immediate steps (first 24 hours)
- Notify insurer through broker within notification-clause deadline.
- Do NOT communicate with the third-party claimant directly.
- Preserve the file — complete and unaltered.
- Inform the relevant risk/compliance colleague.
- Consider whether the fee earner should continue on the file.
- Document the discovery and notification.
Personal partner obligations
- Cooperate with insurer investigation.
- Provide truthful evidence.
- Preserve all contemporaneous notes.
- Do not admit liability or apologise without insurer consent.
- Update the sector regulator if required.
- Maintain confidentiality about the claim.
- Attend court or interviews as required.
Firm-level obligations
- Notification within policy deadline.
- Cooperation with panel solicitor.
- File preservation and secure storage.
- Business continuity planning if the fee earner is unavailable.
- Client communication where required (with insurer consent).
- Documentation for regulatory reporting.
- Risk register update for future placement.
The interplay with continuing to practice
- Most claims allow continued practice — unless the firm/individual is suspended.
- Fee earner may or may not continue on the file.
- New engagements can usually continue.
- Reputational management with existing clients.
- Regulator engagement may affect scope.
Common partner mistakes
- Communicating directly with the third-party claimant.
- Apologising or expressing regret in writing without insurer consent.
- Trying to fix the underlying issue without insurer awareness.
- Delaying notification hoping the claim disappears.
- Discussing the claim externally beyond need-to-know.
- Attempting settlement without insurer consent.
- Sharing the panel solicitor's advice with claimant.
Emotional and practical support
- Claims are stressful — recognise that.
- Professional support: broker, panel solicitor, and where relevant, therapist.
- Family and personal support — but preserve confidentiality.
- Health and wellbeing focus — long claim processes take a toll.
- Firm partner support — not blame.
Frequently asked
Does the claim affect my personal reputation?
Depends on outcome. Prompt notification and clean handling minimise damage.
Should I inform my clients about the claim?
Only where insurer consents and regulatory duty applies. Broker guidance essential.
Can I continue as fee earner on the case?
Sometimes, but not always. Insurer and panel solicitor may recommend a colleague take over.
What about my personal financial exposure?
Depends on firm structure. Traditional partnership: personal exposure if claim exceeds cover. LLP or Ltd: usually protected.
How long will the process take?
Simple claims: 6-18 months. Complex claims: 2-4 years.
Can I get counselling for the stress?
Yes — often covered by legal expenses cover or employer schemes. Reasonable to seek support.
Related
- First 30 days of a PI notification
- PI claim investigation what to expect
- PI claim process step by step
Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Firm reference number 724952. Registered in England and Wales, company number 07014570.
Offices: QCS, 53 Queen Charlotte Street, Bristol BS1 4HQ · Unit 24, Basepoint Centre, Jubilee Close, Weymouth DT4 7BS