Regulators have voted to drop the minimum level of compulsory professional indemnity insurance cover for solicitors to £500,000.
The Solicitors Regulation Authority board voted almost unanimously for the new level last week, following a six-week consultation. However, solicitors have warned that the change could leave firms potentially exposed.
The Law Society has warned that the new minimum will not necessarily lead to lower premiums, could leave smaller firms unable to secure more than the minimum cover, and creates greater risks for clients.
Joanne Staphnill, senior solicitor, Triton Global, says: “For insurance above the new £500,000 minimum amount, insurers could potentially seek to remove protections that law firms may have taken for granted until now.”
The change is subject to approval by the Legal Services Board.
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