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How much does Solicitors Professional Indemnity Insurance cost

by | Apr 26, 2016 | Commercial Insurance, Professions Insurance

Solicitors PI Solicitors Professional Indemnity Insurance

This post sheds light on how much Solicitors Professional Indemnity Insurance costs and what factors affect insurers decisions when quoting prices

The truth is that Solicitors are probably charged the highest prices of any Profession for their Professional Indemnity Insurance cover. Getting the best quotation will have a big impact on your profit margins and having some advance knowledge of what prices to expect is advantageous when negotiating with a broker to obtain quotations.

Are you looking for a Solicitors Professional Indemnity quotation, please complete this form and we will assist you obtain the most competitive terms:

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    What are the best price levels and why?

    The cost of a Solicitors Professional Indemnity Insurance is dependent on several main factors the Insurers use to calculate their price. These are typically:

    • Your Fee Income, which is related to the amount of work being undertaken by the firm
    • The type of work, with high risk areas of law like Residential Conveyancing carrying the highest rating
    • Your claims history
    • Your SRA Regulatory Intervention history
    • The experience of your key staff
    • Risk management & Supervisory controls
    • The exposure of the firm to known emerging claim risks
    • Whether you need £2,000,000 or £3,000,000 in cover

    For firms with a low risk profile generating less than £ 100,000 in fees pricing typically starts at £2,500 annually, with discounts for a claim free history these can dip even lower.

    Where firms have an element of higher risk work, like conveyancing and commercial law, the premium levels are likely to start from £4,000 annually.

    How to get the best value quotation.

    The insurance market for Solicitors Professional Indemnity is restricted to those Insurers who subscribe to the SRA Minimum Terms Agreement. You can further advice from the Law Society here. Because of the limited nature of the market it is recommended that firms do not appoint multiple brokers to canvass Insurers for quotations.

    It may seem counter-intuitive to just seek quotations from one broker, however Insurer’s have a policy to only quote terms for the first broker ‘through the door’. This leads to competition by brokers to submit proposal form documents across to insurers within minutes of receipt, without any form of documents review. Failure to review customers forms thoroughly to ensure they have been fully completed and the information provides a true reflection of the risks can lead to declinature by insurers to quote and higher premium levels.

    Using an experienced and independent broker like Butler Evans will ensure your proposals are properly reviewed and submitted to all available markets for comparative quotations.

    For further information on obtaining a competitive Solicitors Professional Indemnity Insurance quotation please give us a call on 0845 431 0448 or email solicitors@butlerevans.co.uk