Insurance for lawyers

Professional indemnity insurance is among the most highly recommended covers for any business – particularly if it offers advice or recommendations as part of its services.

This policy covers claims made by clients if your advice or guidance causes them or another third-party financial loss.

A typical professional indemnity policy can cover allegations relating to:

• Breach of duty

• Breach of privacy or confidentiality

• Intellectual property infringement 

• Defamation

• Lost or damaged documents

• Reputation repair

• Claims investigation costs

• Negligence.

Professional indemnity insurance cannot cover:

• Existing circumstances

• Intentional damage

• Contractual obligations

• Bankruptcy.

Coverage is defined on a case-by-case basis and will depend on the nature of your business, including size of risk, your risk appetite and capacity. No two businesses are the same.

Each lawyer and practice will face different risks. But, generally speaking, some common risk exposures for lawyers include:

• Professional negligence

• Incorrect advice

• Fraud and dishonesty

• Conflicts of interest

• Documentation mistakes

• Misleading information

• Cybersecurity breaches

• Breach of duty

• Poor client communication.

Some risks are more prevalent for individual businesses. Whatever your risk profile, our brokers will tailor your policy to you.

Yes. Professional indemnity insurance and errors and omissions insurance are interchangeable terms referring to the same cover.

‘Claims made’ is a term used to describe an insurance policy that covers claims notified during the policy term. This may not be the same period in which the incident or error that led to the claim occurred.

Professional indemnity policies provide a 'claims made' basis of cover because advice or service errors in many professions are often discovered weeks, months or even years after the mistake was made.

If the limit of indemnity has changed, it is the limit purchased when the claim is notified that applies – not the limit purchased when the work was completed.