Selena Kearvell
Senior Vice President, North & Scotland
October is approaching. Now is the ideal time to review your PI insurance for solicitors and your risk strategy. Contact us to ensure your firm is protected against today’s evolving risks. We provide access to our exclusive PI facility and bespoke cyber, management liability, and office package policy products.
October is a significant month for solicitor firms, especially when it comes to professional indemnity cover. While you can renew your insurance cover at any time of year, many firms choose October to review and renew their insurance policies. Understanding your current insurer and the market landscape can help you make informed decisions.
It’s also important to consider potential issues such as non-disclosure, disciplinary action, or circumstances that could affect your cover. Ensuring your fully completed proposal form is accurate can prevent failures in the offer cover or qualifying insurance. Whether you're a new law firm, a sole practitioner, or a larger business, taking extra time now can help you secure the right policy and service for the next renewal. If your firm closes or the business fails to meet the date for renewal, it could impact your run off cover or current policy. Consulting your broker for guidance can keep you abreast of potential issues and responsible steps to take. Most importantly you should contact your broker if you're unable to meet the next renewal deadline or need to switch insurers.
Recently, the professional indemnity (PI) market has experienced a softening. This means insurers are offering more flexible terms, lower premiums, or longer renewal periods. As rates are reducing, you could consider locking in for 18 months. Although it’s possible the market may soften even further in a year’s time.
Our specialist PI team is here to support you and give you the best advice across coverage and cost. We can find you the best deal available for your firm and its members.
Beyond PI: Broader risk considerations
While PI remains a core requirement for solicitor firms, other risks are becoming more relevant. Cyber threats, in particular, have become more prevalent and sophisticated. Recent incidents highlight the importance of cyber security. For example, in 2024, a law firm was fined £60,000 after client details were stolen and leaked onto the dark web. The breach involved sensitive client information being accessed and then published online. This led to reputational damage and regulatory scrutiny for the firm.1
Another report highlights the rise of cyber-attacks targeting legal practices. Many firms are now experiencing attempted breaches or actual incidents. These attacks can result in data theft, operational disruption, and significant financial costs.2
While any losses relating to client money should be covered under your PI policy, cyber risk coverage can provide vital protection against these threats. It typically covers costs related to data recovery, legal liabilities, notification expenses, and potential damages. Its purpose is to help your firm respond quickly and effectively to cyber incidents. It helps to minimise disruption and protect your reputation.
Management liability insurance and office package policies can protect against unforeseen events. These can include: employment disputes, regulatory investigations, or property damage. For instance, a sudden employment claim or a regulatory investigation can lead to substantial legal costs and reputational harm. Office policies can cover physical damage to your premises or equipment. It makes sure that your operations can resume quickly after an incident.
The importance of early review
Starting your review now offers several benefits. It gives you time to understand market conditions, explore options, and negotiate better terms. It also ensures you’re fully prepared for any emerging risks before renewal deadlines approach. Early action can lead to more comprehensive coverage, better pricing, and peace of mind.
Supporting firms with 1-10 partners
For smaller firms, Marsh offers an exclusive facility tailored specifically for firms with 1-10 partners. This solution provides access to our dedicated team of experts and a comprehensive suite of insurance products designed to meet your unique needs. Our facility offers flexible coverage options, competitive pricing, and a streamlined process to help you manage your risks effectively. Whether it’s tailored cyber coverage, management liability, or property protection, our team is here to support your firm’s growth and resilience.
Next steps
If you’re unsure about your current coverage or want to understand how market developments might affect your firm, our experts are here to help.
Sources
1. lawgazette.co.uk/firm-fined-after-stolen-client-details-leaked-onto-dark-web
2. lawgazette.co.uk/the-rise-of-cyber-attacks
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