The regulatory burden on English and Welsh law firms continues to intensify. Notwithstanding the Solicitors Regulation Authority (SRA) Minimum Terms and Conditions, for firms purchasing PI insurance, this regulatory focus has direct implications—not just on premium levels, but on how well policies respond when regulatory scrutiny hits.
From client money audits to SRA behavioural probes, firms are under increased scrutiny and asking: “Will our policy respond, and if so, how?”
01
The SRA’s remit has expanded. Investigations are now frequently triggered by:
And it’s not just investigations—the early-stage legal costs, internal reviews and reputational fallout can be just as disruptive.
02
Notwithstanding the SRA Minimum Terms and Conditions, Professional Indemnity policies are not identical. Here’s where firms often trip up:
| Risk Area | Are You Covered? |
|---|---|
| Early legal fees advising on an investigation | Subject to wording. May be treated as part of wider defence costs |
| Internal investigative costs | Often not covered |
| SRA or FCA inquiries | May only be covered once formal investigation or notice received |
| Reputation management expenditure | Rarely included in a PI policy |
It’s critical to carefully review the policy wording—not just rely on assumptions. That’s where a broker like Willis plays a key role.
03
At Willis, we’re helping firms proactively respond to this shift in three ways:
04
Client Money Breaches: this remains one of the top causes of SRA intervention.
Cyber Events: PI underwriters are tightening scrutiny on data breach response—even if not a standalone cyber claim.
Professional Misconduct: as a focus of the SRA, underwriters are increasingly focused on the internal measures within firms that are in place to deter dishonest and unethical behaviour, along with those to ensure client protection.
05
Firms must see PI not just as a regulatory tick-box, but a strategic shield. You want confidence that when regulators call, your policy is built to help—not hold you back.
“Each investigation has its nuances—but most PI wordings aren’t written with this in mind. That’s why we work with clients to provide a tailored solution and build clarity.”
Jack Lowndes | Associate Director, PI Legal Services
If you haven’t reviewed your PI policy wording this year—especially the regulatory provisions—now’s the time.
Reach out to us today to request a wording review
