header-logo header-logo

Home Login E-newsletter About us
11 February 2022 / Veronica Cowan
Issue: 7966 / Categories: Features , Profession , Insurance / reinsurance
printer mail-detail

Small law firms: running for cover?

© Copyright LexisNexis 2026. All Rights Reserved.
71848
Are increasing professional indemnity insurance premiums posing a threat to small law firms? Veronica Cowan investigates
  • Reports show that professional indemnity insurance (PII) has increased by an average of 30% among small and medium firms, with the cost of PII identified as one of their biggest threats.
  • The increasing premiums may be fuelling a rise in legal practitioners leaving private practice and becoming consultants for larger firms.

News that law firms have struggled during the COVID pandemic is hardly surprising, given the importance of face-to-face contact for many clients in certain specialities. But physical interaction apart, it seems that a major reason is because they cannot afford the professional indemnity insurance (PII) premiums required by the Solicitors Regulation Authority (SRA). This mainly covers civil liability claims, and usually professional negligence, in private legal practice. Since insurance is compulsory, if a lawyer cannot buy it, they cannot be in business. Looking ahead to April 2022, law firms will be assessing their risk and seeking cover for it. 

Minority rule

‘The question

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Read All
Sponsored by
Clarke Willmott—Matthew Roach

Clarke Willmott—Matthew Roach

Partner joins commercial property team in Taunton office

Farrer & Co—Richard Lane

Farrer & Co—Richard Lane

Londstanding London firm appoints new senior partner

Bird & Bird—Sue McLean

Bird & Bird—Sue McLean

Commercial team in London welcomes technology specialist as partner

NEWS
Read All
NLJ this week: Finding innovative ways to fund the justice gap
When it comes to free legal advice, demand massively outweighs supply. 'Millions of people are excluded from access to justice as they don’t have anywhere to turn for free advice—or don’t know that they can ask for help,' Bhavini Bhatt, development director at the Access to Justice Foundation, writes in this week's NLJ
NLJ this week: Policing the safeguards when appointing trust corporations
What safeguards apply when trust corporations are appointed as deputy by the Court of Protection? 
NLJ this week: What the court considers when assessing refusal of ADR
Disputing parties are expected to take part in alternative dispute resolution (ADR), where this is suitable for their case. At what point, however, does refusing to participate cross the threshold of ‘unreasonable’ and attract adverse costs consequences?
NLJ this week: Where would we be without limitation?
In this week’s NLJ, Fred Philpott, Gough Square Chambers, invites us to imagine there was no statutory limitation. What would that world be like?
NLJ this week: Two’s company, but three’s a crowd in financial provision cases
When an ex-couple is deciding who gets what in the divorce or civil partnership dissolution, when is it appropriate for a third party to intervene? David Burrows, NLJ columnist and solicitor advocate, considers this thorny issue in this week’s NLJ
Copyright © 2026 LexisNexis
back-to-top-scroll