PI insurance for start-up solicitors' firms — the SRA-compliant first year
Reviewed by Matthew Bartlett, Director, Apex Insurance Brokers Limited (FCA FRN 724952) · Published 14 July 2026
Opening a new SRA-regulated firm requires SRA MTC-compliant PI cover in place from day one of practising. There is no grace period. This page covers minimum limit, qualifying insurer choice, run-off from the previous employer, aggregation, and what a first-year premium typically reflects.
The SRA requirement in one paragraph
SRA-regulated firms must hold PI cover from a Qualifying Insurer, on Minimum Terms & Conditions, at a minimum limit of £2m per claim for sole practitioners and traditional partnerships, or £3m per claim for incorporated practices (LLPs, ltd companies). Cover must be in place at commencement of practice.
Choosing a Qualifying Insurer for a start-up
Not every SRA Qualifying Insurer will look at start-up business. Many prefer established firms with a claims track record and financials to underwrite.
Specialist Qualifying Insurers with a start-up appetite: often those with a dedicated new-firm facility or lower-friction underwriting for solo practitioners.
Scheme brokers (Marsh, Griffiths & Armour, Lockton) place into their qualifying-insurer panels; some schemes have minimum size or partner-count thresholds.
Specialist independent brokers (like Apex) test wider Qualifying Insurer market including those without a scheme relationship.
Common friction for start-ups: some Qualifying Insurers will not write a first-year firm with fewer than three partners; some require personal guarantees; some restrict cover for specific practice areas until claims history builds.
Run-off from the previous employer
A partner or solicitor leaving an existing firm generally continues to enjoy PI cover under the old firm's policy for prior acts done at that firm, provided the old firm maintains PI (which the SRA requires for six years after cessation of practice).
The new firm's PI policy responds to acts done at the new firm. There is no gap for prior acts unless the previous firm has failed to maintain run-off — a rare but serious problem.
Confirm in writing: (1) the previous firm's PI insurer is aware of the departure; (2) the previous firm carries or will carry run-off cover to the SRA six-year minimum; (3) prior acts done by the departing solicitor at the old firm are captured under the old firm's policy.
First-year sizing and structure
Fee income estimate for year 1 — drives the base premium.
Practice areas — conveyancing, litigation, corporate, wills-and-probate all rate differently.
Partner or director claims history — personal record follows the individual to the new firm.
Choice of cover limit — the SRA minimum may not be enough; a firm handling large-transaction work often needs more.
Aggregation position — standard SRA MTC clause 2.5, or negotiated variation where the practice is complex.
What a start-up premium typically reflects
The market prices a first-year solicitors' firm against fee income estimate, partner claims history and practice mix. Sole-practitioner conveyancing is one of the harder new-firm placements — conveyancing exposure combined with no track record.
Apex does not publish specific starting premiums — every firm quotes differently. Expect a full presentation, market run, and multiple quotes before binding. Avoid any broker offering a template-quote without seeing the fee income estimate and practice profile.
Timing and process
6-8 weeks before opening — engage a specialist broker, gather the presentation material.
4-6 weeks before opening — broker runs the market, initial terms return.
2-3 weeks before opening — final selection and cover-note issue.
Day of opening — policy incepts. Practising Certificate cannot be exercised without cover in place.
Within six months of opening — first mid-term review; adjust as fee income materialises.
Frequently asked
Can I open a solicitors' firm without PI cover in place?
No. SRA MTC-compliant PI cover must be in place from the day the firm commences practice. Practising Certificates cannot be exercised without cover. The SRA takes this seriously.
What is the minimum PI limit for a new solicitors' firm?
£2m per claim for sole practitioners and traditional partnerships; £3m per claim for incorporated practices (LLPs, ltd companies). This is the SRA MTC floor. Firms doing high-value transactional work often need more.
Do I have to use a Qualifying Insurer?
Yes. SRA rules require the primary PI policy to be with a Qualifying Insurer on Minimum Terms & Conditions. Excess or top-up cover above the mandatory layer can be placed with any insurer.
What if I cannot find a Qualifying Insurer to write me at start-up?
Options include: (1) different qualifying insurers — specialist brokers know which insurers write start-ups; (2) a scheme broker with a start-up facility; (3) delayed opening while the market softens; (4) restructure the firm to reduce the underwriting friction (adding partners, adjusting practice mix). The SRA does not warrant that every applicant firm will find cover.
Do I need run-off from my old firm?
The old firm is legally required to hold run-off cover for six years after cessation of practice. As a leaving solicitor you rely on the old firm doing that. If the old firm ceases and does not maintain run-off, a serious regulatory issue arises. Confirm the old firm's run-off position in writing before you leave.
How much does start-up PI insurance cost?
Highly variable and depends on fee income estimate, practice mix, partner history and choice of insurer. A basic sole-practitioner start-up doing non-contentious work may sit in the low-to-mid four figures; a start-up conveyancing practice or a start-up with prior claims history much more. Apex quotes what the market returns, not a template.
Can I get a start-up quote before I have a firm SRA authorisation date?
Yes, brokers can indicate terms subject to authorisation confirmation. Cover only incepts once the SRA authorisation is confirmed and the firm commences practice.
Should I use a scheme broker or a specialist broker for start-up PI?
Depends on the profile. Scheme brokers offer scale and processes; specialist brokers with wholesale market access offer wider insurer choice and more structuring flexibility. For a straightforward start-up with clean history, either works. For a complex profile, a specialist broker is typically the right call.