Solicitors and lawyers in the UK must carry professional indemnity insurance to protect them and their clients against costly legal mistakes and omissions. Solicitors can choose from three basic types of insurance cover for their practices.
Primary cover requires a minimum of £2,000,000 protection for any legal practice and the figures rises to £3,000,000 for incorporated practices or LLPs. These figures might prove way too low for lawyers who routinely deal with major corporate clients. The first cover level generally costs the most. Solicitors can contract for additional protection at more affordable ates.
Numerous factors impact the decision about how much cover to choose. Different insurers offer different rates and insurance packages, and lawyers should investigate the options before making a commitment. Most solicitors understand the need to cover their practice very well – it comes with the territory.
Busy solicitors often lack the time to investigate multiple insurance options and entrust their needs to office managers or business brokers. Office managers can research many insurance options efficiently online to get rate quotes, cover options, and policy details so the principal partners can make an informed decision quickly.
Business brokers often put together bespoke policies that closely match the needs of individual solicitors. The cover levels, excesses, and other options can vary greatly between family solicitors working in rural areas and high-pressure solicitors working for sensitive manufacturers with global-marketing operations, which could potentially involve billions of pounds.
Benefits of insurance brokers include the following advantages for busy practices.
Insurance cover for buildings and employer's indemnity insurance are also essential. Loss of income due to accidents or injuries might also prove beneficial. Solicitors who represent insolvency cases run the risk of losing their fees in these cases, but insurance cover can offer fee protection in these cases.