Why your smaller solicitor clients need professional indemnity insurance

Law firms have to assess themselves and purchase a level of PI commensurate with their own risk exposure. James Graham of Travelers explains how it works.

Solicitors’ professional indemnity insurance (PI) is cover your clients hope they will never have to use. But there are good reasons why the profession’s regulatory bodies require practising law firms to have it. By protecting against civil liability claims, PI enhances a firm’s financial security and protects its clients.

Allegations of professional negligence are common—and regardless of how well-founded they may be, they can be difficult to defend. This is especially true when they relate to events far back in the past. Key staff who were involved may have left or simply forgotten crucial details.

By ensuring your smaller solicitor clients have the right PI cover, you’re mitigating the damaging consequences they could face if they were held liable for financial losses as a result of advice they have given to clients. In the process, you’re giving them peace of mind. When they know they are protected from exposures arising from the professional advice they provide, they can focus on running their firm—not on potential claims of professional negligence.