SRA Minimum Terms and Conditions: what PI cover solicitors must have
Reviewed by Apex Insurance Brokers · Last reviewed 2026-08-05
Professional indemnity (PI) insurance is not optional for law firms. Under the SRA Indemnity Insurance Rules, any firm authorised by the SRA must carry qualifying insurance before it can practise. What makes solicitors' PI distinctive is that the SRA does not simply require "adequate" cover and leave the detail to the market. It publishes a mandatory baseline — the Minimum Terms and Conditions — that every qualifying policy must satisfy. This page explains how the MTC are structured, so you know what your policy must deliver and what to check against the SRA's current published rules. Law firms that want the market approached by a specialist can start with our solicitors PI broking team.
Who the rules apply to
The MTC apply to firms regulated by the Solicitors Regulation Authority, the regulator for solicitors in England and Wales. Cover must be bought from a participating insurer — an insurer that has signed the SRA's participating insurer agreement and appears on the SRA's published list. A policy from an insurer outside that arrangement, however generous, does not satisfy the rules.
Because the terms are set by the regulator rather than the insurer, an MTC policy cannot exclude or reduce cover below the mandated baseline. Insurers compete on price, service and any cover they offer above the minimum — not by carving out the protections the SRA insists on.
The "any one claim" basis
This is one of the most important features of the MTC and a point often misunderstood. The minimum limit of indemnity applies on an "any one claim" basis — meaning the full limit is available for each and every claim during the policy period, not shared across all claims as a single annual aggregate.
In plainer terms: if your firm faced two unrelated claims in the same year, each would have the benefit of the full minimum limit. This is more protective than the aggregate structure common in other professions, where one large claim can exhaust the year's cover and leave nothing for the next. It reflects the potential severity of solicitor negligence claims, particularly in conveyancing, litigation and probate.
Need PI cover that meets the SRA Minimum Terms? We place compliant policies with participating insurers.
Get a PI quote →Minimum limit: a two-tier structure
The SRA sets a minimum limit of indemnity, but it is not the same figure for every firm. The rules operate on two tiers based on the firm's legal structure:
- Limited-liability bodies — such as limited liability partnerships (LLPs) and limited companies — must carry a higher minimum limit per claim. The reasoning is that a limited-liability structure caps the personal exposure of members, so a larger insured limit protects clients who could not otherwise pursue the individuals behind the firm.
- Other firms — typically sole practitioners and traditional (unlimited-liability) partnerships — carry a lower minimum limit per claim.
Both minimums are set as fixed monetary sums per claim rather than being turnover-based, and both apply on the "any one claim" basis described above. Because these figures are set by the SRA and can be revised, always confirm the current minimum limits in the SRA's published Indemnity Insurance Rules and Minimum Terms and Conditions rather than relying on a remembered figure.
The MTC minimum is a floor, not a recommendation. Many firms buy well above it — commonly stepping up to £5 million, £10 million or more — where the value of matters they handle exceeds the mandatory limit. A single high-value conveyancing or corporate transaction can dwarf the minimum, so the "appropriate" limit for your firm is a risk judgement, not simply the regulatory baseline.
Run-off cover
PI insurance is written on a "claims made" basis, meaning it responds to claims notified during the policy period — regardless of when the underlying work was done. That creates an obvious problem when a firm closes: negligence claims can surface years after the advice was given, once there is no live policy to respond.
The MTC address this with run-off cover. When a firm ceases practice without a successor firm taking over its liabilities, the last insurer must provide run-off cover for a defined period so that clients remain protected for past work. This continuation is a mandatory feature of every MTC policy, not an optional extra a firm can decline.
Run-off is a significant planning point for any firm approaching closure, retirement or merger. The cost and length of run-off should be understood well before a firm winds down — confirm the required run-off period in the SRA's current rules, as it is prescribed rather than negotiable.
MTC at a glance
| Feature | What the MTC require |
|---|---|
| Regulator | Solicitors Regulation Authority (England & Wales) |
| Who provides cover | A participating insurer on the SRA's list |
| Limit basis | "Any one claim" — full limit per claim, not aggregate |
| Minimum limit | Two tiers — higher for limited-liability bodies (check current SRA figures) |
| Run-off | Mandatory on closure without a successor firm |
| Reducing cover below the baseline | Not permitted — the MTC set a floor |
What this means for your firm
Compliance is not just about buying a policy — it is about buying the right policy from the right insurer, at a limit that reflects your actual exposure. Confirm your insurer is a participating insurer, check that your structure is matched to the correct minimum limit tier, and think about run-off before you ever need it. Where the work you do could give rise to claims well above the mandatory minimum, discuss a higher limit with a broker who places solicitors' PI regularly. You can start a PI quote with Apex here.
Common questions
Does the SRA set the actual monetary minimum, or just the terms?
Both. The SRA prescribes the Minimum Terms and Conditions and the minimum limit of indemnity. Because the figures can be revised, always verify the current minimums in the SRA's published Indemnity Insurance Rules before relying on them.
Why do LLPs and limited companies need a higher minimum than partnerships?
A limited-liability structure protects the personal assets of the firm's members. The higher insured limit compensates by giving clients a larger, more certain pot to claim against if something goes wrong.
What happens to cover if my firm closes?
If no successor firm takes on your liabilities, your last insurer must provide run-off cover for the prescribed period, so clients remain protected for work done before closure. This is built into every MTC policy.
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.