Most likely not unfortunately.  If you wanted the benefit of additional cover, this would have to be taken out for the practice as a whole, for the whole year (or remainder of the insurance year, if purchased after your PII renewal).

Please note, as cover is on a ‘claims made’ basis, it is not advisable to take out additional cover for one year only – and, increasingly, commercial clients will require that a certain level of cover is retained for a number of years following the transaction.  Practices should therefore consider whether the transaction value will be a one-off, and whether the fees generated justify the long-term impact on the cost of the practice’s PII.

We can provide you with indicative quotations for additional cover as required.

The first step to gauging how much PI cover is necessary for your business is to ask your clients how much they would expect. After all, this type of policy brings confidence to them as well as you. A minimum threshold may also be specified by a governing body you belong to.

For Solicitors, The SRA now require firms to have in place an ‘appropriate’ level of cover.  While there remains a regulatory minimum level of cover (£2m for a partnership, and £3m for all other entities) this may not be adequate, given the nature of the work your practice undertakes. 

In determining what an ‘appropriate’ level of cover is, you should consider:

• Your current work
• Your anticipated future work
• Your past work.  You should consider a minimum of 6 years’ work history, but we would recommend at least 10 years’ history is taken into account.

Remember that your PII policy is a ‘claims made’ policy.  This means that the available cover is determined by the cover you have in place at the time a claim is made, not when the work was undertaken.  Many claims, particularly arising from property, wills and trusts, tax and corporate and commercial work, arise several years after the actual error was made. 

Be alert to the fact that the potential claim value can be more than the face value of the transaction.  For example, an options claim may be for the lost development value of a piece of land rather than the actual cost of the land when purchased.  Clients circumstances also change, which can have an impact on the quantum of certain types of claim. 

For more information, please do call us.

There is no simple answer to this question.  Some insurers are offering clients a range of renewal dates, while others are not.  There may be some potential saving on offer for a longer policy, but this does not appear to be the trend to date.

From the firm’s perspective, the best reason for considering moving your renewal is if the 1st October renewal does not sit well with your Practice’s Financial Year End.

For more information, please call us will be happy to assist.

Whether you’re a sole practitioner or a large firm you can enjoy:

• Dedicated client managers who are legal sector experts, to help make the PI renewal process as smooth as possible
• Cover provided through “A rated” insurers
• All year round Risk Management Advice & Support

1) AI 2017 & 2018 Legal Awards Winner – Best Professional Indemnity Insurance Broker – UK

2) SME Northern Enterprise Awards 2019 – Professional Indemnity Brokers of the Year 2019