PII and negligence—law firms

Copyright © 2025 LexisNexis

This subtopic is intended for law firms regulated by the SRA, including sole practices. It reflects the requirements in the SRA Standards and Regulations relating to professional indemnity insurance (PII) and negligence. This subtopic is not intended for in-house lawyers or freelance solicitors.

Requirement to have PII

Law firms regulated by the SRA must take out and maintain qualifying PII with a participating insurer that provides adequate cover in respect of current or past practice, taking into account any alternative arrangements the firm or its clients make. They must also ensure that their PII provides adequate and appropriate cover in respect of services the firm provides

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Existing user? Sign-in TAKE A FREE TRIAL
Powered by Lexis+®
Latest Practice Compliance News

Law Society publishes practice note on conduct of litigation following Mazur v Charles Russell Speechlys

The Law Society has published guidance for solicitors, law firms and legal businesses on ensuring that only those authorised under the Legal Services Act 2007 (LSA 2007) carry on the conduct of litigation, following the High Court judgment in Mazur v Charles Russell Speechlys [2025] EWHC 2341. The note explains that the conduct of litigation is a “reserved legal activity”, meaning that only individuals authorised by the Solicitors Regulation Authority (SRA) or another approved regulator may undertake it. It provides detailed guidance on distinguishing between the formal “conduct of litigation” — such as issuing, filing and serving applications or statements of case — and other tasks that may be performed by non-authorised staff under appropriate supervision.

New Practice Compliance forecast as at 15 October 2025

Our new Practice Compliance forecast (as at 15 October 2025) is now live. This month we report on items including (1) the SRA's thematic review into source of funds and source of wealth, (2) changes to the UK Sanctions List, (3) updates to HM Treasury's consultation on improving the effectiveness of the Money Laundering Regulations, and (4) the LSB's new review examining how regulators ensured information on conducting litigation was accurate and reliable.

LSB announces enforcement action against SRA over handling of SSB Group prior to collapse

The Legal Services Board (LSB) has announced enforcement action against the Solicitors Regulation Authority (SRA) following an independent review that found the regulator failed to respond effectively or efficiently to repeated warnings about the conduct and financial management of SSB Group. SSB Group entered administration in January 2024 with debts exceeding £200m, leaving thousands of clients exposed to substantial legal costs despite assurances of ‘no-win, no-fee’ arrangements.

Practice Compliance weekly highlights—16 October 2025

This week's edition of Practice Compliance weekly highlights includes the LSB’s review of regulatory guidance following the Mazur ruling, the SRA’s response to its consultation on first-tier complaints handling, publication of OFSI’s annual frozen assets review, an analysis of draft AML reforms reshaping the UK’s anti-money laundering framework, and the UK government’s call on major firms to bolster cyber resilience.

View Practice Compliance by content type :  
News
Practice notes
Precedents
Q&As

Popular documents

Priority between loss reliefs in loss making companies

Priority between loss reliefs in loss making companiesWhy does it matter?A company that is a member of a group and has incurred any of the types of losses available for surrender by way of group relief may, without any further rules, have more than one way in which to use the loss. There are a

Late payment penalties—inheritance tax

Late payment penalties—inheritance taxWhile interest often accrues on overdue tax, the late payment of certain taxes may also attract a penalty. For information on the interest accruing on overdue tax, see Practice Notes: IHT—payment deadlines on death—Interest on IHT and Interest on late paid

If a beneficiary signs a deed of disclaimer of their share of an estate and the estate pays their legal

If a beneficiary signs a deed of disclaimer of their share of an estate and the estate pays their legal fees, will that count as a PET against their estate?A disclaimer is the refusal of a gift prior to acceptance. The refusal of the gift must take place before the beneficiary accepts any benefit

Contributory negligence in personal injury claims

Contributory negligence in personal injury claimsContributory negligence is a partial defence which can lead to a discount in damages.Other defences may also be relevant. See Practice Notes: Did the claimant consent to the risk of injury? and Was the claimant involved in an illegal activity?If a
Priority between loss reliefs in loss making companies

Priority between loss reliefs in loss making companies

Priority between loss reliefs in loss making companiesWhy does it matter?A company that is a member of a group and has incurred any of the types of losses available for surrender by way of group relief may, without any further rules, have more than one way in which to use the loss. There are a

Late payment penalties—inheritance tax

Late payment penalties—inheritance tax

Late payment penalties—inheritance taxWhile interest often accrues on overdue tax, the late payment of certain taxes may also attract a penalty. For information on the interest accruing on overdue tax, see Practice Notes: IHT—payment deadlines on death—Interest on IHT and Interest on late paid

If a beneficiary signs a deed of disclaimer of their share of an estate and the estate pays their legal

If a beneficiary signs a deed of disclaimer of their share of an estate and the estate pays their legal

If a beneficiary signs a deed of disclaimer of their share of an estate and the estate pays their legal fees, will that count as a PET against their estate?A disclaimer is the refusal of a gift prior to acceptance. The refusal of the gift must take place before the beneficiary accepts any benefit

Contributory negligence in personal injury claims

Contributory negligence in personal injury claims

Contributory negligence in personal injury claimsContributory negligence is a partial defence which can lead to a discount in damages.Other defences may also be relevant. See Practice Notes: Did the claimant consent to the risk of injury? and Was the claimant involved in an illegal activity?If a