LLPs and partnerships · PI

PI insurance for LLPs and partnerships — UK 2026

Reviewed by Matthew Bartlett, Director, Apex Insurance Brokers Limited · Published 15 July 2026

LLPs and traditional partnerships face materially different liability profiles. Cover needs to reflect the structure, not just the profession.

The structural difference

Traditional partnership: partners are jointly and severally liable for the firm's debts and negligence — personal assets exposed.

LLP (Limited Liability Partnership under LLPA 2000): partners have limited liability for firm's debts — personal assets protected from most claims.

Both need PI — the structure affects how claims flow to individuals but not whether PI is needed.

How PI responds

Firm's PI responds to negligence claims against the firm.

For traditional partnerships, adequate PI is critical — the firm and partners' personal assets are all in the pot.

For LLPs, PI still matters but the personal-asset risk is lower.

SRA MTC and other regulated frameworks apply regardless of structure.

Cover levels

Regulated professions (solicitors, accountants, architects): sector minimum applies to both LLP and partnership.

Turnover-based scaling (ICAEW 2.5× fees, RICS turnover scale) applies regardless of structure.

LLPs and partnerships often carry higher limits than sole traders — reflecting bigger books and more complex work.

Partner-level considerations

New partners joining should verify the retroactive date covers earliest historic exposure.
Departing partners in traditional partnerships need run-off arrangements agreed at exit.
LLP members leaving are less exposed but still benefit from run-off protection.
Successor practice rules matter for solicitor LLPs and partnerships — see SRA guidance.

Frequently asked

Is PI different for LLPs vs partnerships?

The cover is the same in principle — the structure affects how liability flows to partners, not the PI wording.

Do all partners need to be named?

Named partners are usually specified on the schedule for larger firms. Cover is at firm level.

What happens to PI when a partner leaves?

Firm's PI continues to cover claims against the firm relating to the departing partner's work. Partner may want personal run-off in addition.

Can partners have their own PI?

Yes — personal PI in addition to firm PI is possible, though rarely done unless partners work outside the firm.

Does the LLP or partnership need D&O?

Not usually — D&O applies to companies with directors. LLPs and partnerships have members, not directors. Some LLPs still hold Management Liability.

What if we convert LLP to Ltd?

Cover needs to be re-arranged — corporate PI is issued to the new entity with continuity of cover arranged.

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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.