SRA six-year run-off cover for UK solicitors' firms

Every SRA-regulated firm ceasing to trade must place six years of run-off cover on SRA MTC-compliant terms from a Qualifying Insurer. It's a mandatory placement, expensive, and one of the harder placements a specialist broker handles. This page sets out what it involves in 2026.

The SRA MTC six-year rule

1. Six years mandatory from cessation. The rule bites regardless of firm size or practice profile.
2. SRA MTC-compliant terms. Standard wording, defined limits (£2m per claim sole practitioner/partnership, £3m per claim incorporated), each-and-every-claim structure.
3. Qualifying Insurer only. Primary layer must sit with an SRA-approved insurer. Approximately 20 insurers are on the Participating Insurer register; typically 6-8 write actively.
4. Single-premium block. Paid upfront at cessation for the whole 6-year period.
5. Extended Policy Period (EPP) applies if the firm cannot secure renewal at 1 October — 30 days extended cover at last year's terms; then 60-day Cessation Period during which run-off or successor arrangements must be finalised.

Run-off premium mechanics for SRA firms

1. Baseline rule of thumb. Six-year run-off premium typically 2-3x the firm's last annual PII premium for a clean-history practice.
2. Conveyancing-heavy firms. Rating loading — conveyancing is the most claim-prone activity, and residual claims risk persists for years.
3. Prior claims. Loading typically 50-200%+ on top of the baseline multiplier.
4. Firm size and complexity. Larger firms sometimes negotiate lower multipliers due to insurer relationship; small firms typically pay the standard rate.
5. Retiring individual partner departure. Where a partner retires from a continuing firm, the firm's ongoing PII typically covers prior acts — retiring individual doesn't need separate cover unless firm cover is inadequate.

The placement process

1. 6-12 months before intended cessation, engage a specialist broker.
2. Broker preparation: full claims history, personnel, financial resilience, practice profile documentation.
3. Market run: primary Qualifying Insurer plus wholesale Lloyd's access for difficult placements.
4. Structural options: excess levels, aggregation position, ring-fenced practice areas.
5. Bind decision typically 4-8 weeks before intended cessation date.
6. Run-off incepts on cessation day.

Common SRA run-off placement scenarios

1. Sole-practitioner retirement at £5-10k annual premium. Standard placement; 6-year block from £10-30k single premium.
2. 2-4 partner firm at planned closure. More complex; conveyancing exposure and multi-partner structuring drives cost.
3. Firm merging with another practice. Successor-practice framework applies; buyer may absorb prior acts under their PII, or seller carries formal run-off.
4. Firm sale to another firm. SPA governs; often buyer takes prior acts, seller runs off any excess exposure.
5. Firm entering Extended Policy Period at 1 October. Emergency placement mode. Specialist broker essential.
6. Difficult-risk firms — large prior claim or serious loss ratio. Wholesale Lloyd's specialist placement; premium loadings material.

Extended Policy Period and Cessation Period

1. Extended Policy Period (EPP). 30 days from 1 October if firm cannot secure Qualifying Insurer renewal. Provides breathing room during which the firm must attempt to secure renewal, plan succession, or arrange run-off.
2. Cessation Period. 60 days following EPP if renewal still not secured. During this period the firm cannot take on new client work but must complete existing matters.
3. Notification duties. Firm must notify SRA on entry to EPP and Cessation Period.
4. Practical implication. A firm without renewal by mid-October is on a countdown clock. Specialist broker engagement is urgent.

What Apex looks for when placing solicitors' run-off

1. SRA authorisation number and all approved individuals' SMF status.
2. Full claims history from all prior policy years.
3. Fee income by practice area.
4. Reason for cessation (retirement, merger, sale, business failure).
5. Any prior insurer engagement about non-renewal.
6. SRA correspondence about complaints or supervisory matters.
7. Successor arrangements if any.
8. Financial position at cessation.

Frequently asked

Related reading

• Solicitors sector pillar
• Solicitors EPP and Cessation Period decision flowchart
• PI insurance for start-up solicitors (comparison)
• Solicitors 1 October PI renewal shock