How much PI insurance cover do I need as a solicitor in the UK?

~3 min read

Reviewed by Matthew Bartlett, Director · Last reviewed 2026-07-08

Solicitors regulated by the Solicitors Regulation Authority face a fixed statutory minimum. The SRA Indemnity Insurance Rules 2020 Schedule 1 sets the Minimum Terms and Conditions floor at £2 million each and every claim for sole practitioners and traditional partnerships, and £3 million each and every claim for LLPs and incorporated practices. That's the compulsory floor. For most firms of any real size, the MTC minimum is well below realistic exposure on any given serious matter. This entry sets out how to size above the floor, when the incorporated £3m limit applies, and where specific work types push the recommendation up.

Which floor applies to your firm

The MTC set two limits, both at Schedule 1 Clause 2 of the SRA Indemnity Insurance Rules 2020.

£2 million each and every claim — sole practitioners and traditional partnerships (unincorporated practices).

£3 million each and every claim — LLPs, limited companies, and other incorporated practices.

The rationale for the higher LLP figure is the limited liability itself: in a traditional partnership, individual partners are personally liable for the firm's debts and a claimant reaching the policy limit can, in principle, pursue partners' personal assets. In an LLP or company, that route is closed. The regulator sets a higher compulsory floor for incorporated practices so that the mandatory insurance provides a larger cushion for claimants who no longer have recourse to individual assets.

Short answer — market ranges

Sole practitioner or small partnership, high-street work (residential conveyancing, family, private client), £150k–£500k fees: £2m floor. Most placements sit at £2m primary.
Small LLP (2–5 partners), mixed private client / commercial, £500k–£1.5m fees: £3m floor. Placements commonly £3m–£5m primary.
Mid-market firm (5–15 partners), commercial and litigation, £1.5m–£5m fees: £3m floor. Broker recommendations typically £5m–£10m primary plus top-up.
Larger commercial firm (15–50 partners), commercial finance, corporate M&A, complex litigation, £5m–£20m fees: £3m floor. Placements £10m–£25m primary plus £15m–£50m top-up commonly.
City firm: the compulsory £3m minimum is irrelevant to sizing. Firms self-insure the first tranche and carry towers into hundreds of millions.

What drives sizing above the floor

Four factors push sizing up.

The largest single client or matter. A commercial-litigation client generating £600k of fees on a £30m contract dispute concentrates exposure. Sizing to the aggregate book misses this.

Aggregation. The MTC allow related claims arising from a single matter or a series of related matters to be treated as one claim under the aggregation wording. On conveyancing volumes, this can compress the each-and-every limit under a single wave of related defective-title claims. See our detailed entry on SRA MTC aggregation and conveyancing transactions.

BSA 2022 residential exposure. Solicitors who advised on residential conveyancing during the Building Safety Act 2022 s.135 retrospective 30-year window face potential DPA claims running to 2054. This affects sizing where the firm continues to write residential.

Regulatory investigation cover. Solicitors face SRA investigation exposure separate from civil claims. Investigation cover is often layered on to the primary PI wording as an endorsement and consumes limit if a matter escalates.

Client and lender requirements

Beyond the SRA floor, lenders on the CML/UK Finance panel and larger commercial clients frequently specify minimum PII cover. Panel membership on some lenders' conveyancing panels requires £3m minimum regardless of firm structure — an unincorporated practice at the £2m MTC floor may not qualify. Panel access is a business-model question, not a compliance one.

Worked example

Illustrative only. An 8-partner LLP with £4.5 million in fees. Commercial litigation client generating £600k annually. Occasional conveyancing instructions. MTC minimum: £3m. Realistic single-claim exposure on the commercial-litigation client — say a limitation point missed on a substantial contract dispute — could sit at £5m–£8m. Broker recommendation: £5m primary layer with contract-litigation endorsement, £5m top-up for a £10m tower. Aggregation reviewed for the conveyancing exposure. Six-year run-off costed as a planning number; extended run-off for the residential back-book considered separately under BSA 2022 s.135.

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