Limiting liability

Limiting liability

It makes good business sense to seek to limit the extent of your liability to clients. However, there are regulatory and legal hurdles to clear and restrictions on what a liability cap can achieve.

SRA requirements

You must not exclude or attempt to exclude liability below the minimum level of cover required by the Solicitors Regulation Authority (SRA) Indemnity Insurance Rules. This is:

•
£3 million for firms that are corporate entities (including limited liability partnerships (LLPs))
•
£2 million for partnerships and sole practitioners (excluding LLPs)

You should bear in mind guidance

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