Professional indemnity insurance—what are its limits?
Produced in partnership with Lockton Companies insurance brokers
Professional indemnity insurance—what are its limits?

The following Practice Compliance guidance note Produced in partnership with Lockton Companies insurance brokers provides comprehensive and up to date legal information covering:

  • Professional indemnity insurance—what are its limits?
  • Prior cover
  • Death or bodily injury
  • Partnership disputes
  • Employment breaches, discrimination, etc
  • Debts and trading liabilities
  • Fines, penalties, etc
  • Fraud or dishonesty
  • Directors’ and officers' liability
  • War and terrorism
  • more

The SRA’s Minimum Terms and Conditions (MTC) indemnify you against civil liability to the extent that it arises from private legal practice.

The MTC offer the widest form of cover of any professional compulsory mandated terms and are subject to very few exclusions, but there are some.

This Practice Note considers each of the exclusions to understand its intent and whether the subject matter excluded can be more appropriately insured any other way.

Prior cover

The MTC are on a 'claims made basis'. This means that cover will operate only for claims and circumstances made during the period of insurance. Any claim or circumstance made during a previous period is excluded.

Death or bodily injury

Liability for death or bodily injury is excluded as these liabilities are insurable under either a separate public liability and/or employer’s liability policy.

However, cover is included for psychological injury or emotional distress if arising from a breach of duty in the course of private legal practice.