Free calculator · UK 2026/27
PII Premium Estimator
Professional indemnity insurance is a mandatory SRA requirement and a significant practice expense. This tool gives a directional range based on your gross fees, practice area, claims history and cover level — useful for budget planning and broker comparison.
PII Premium Estimator
Professional indemnity insurance is a mandatory SRA requirement and a significant practice expense. This tool gives a directional range based on your gross fees, practice area, claims history and cover level — useful for budget planning and broker comparison.
Indicative only. UK 2025/26 market rates. Actual premiums depend on underwriter appetite, AML controls, supervision quality, and the underwriter's book for your practice area. Specialist brokers with strong solicitor PII books typically deliver 10-25% better than generalists.
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How PII premiums are calculated
Solicitor PII premiums are expressed as a percentage of gross fee income ('premium rate'). The rate varies by practice area — conveyancing-heavy firms pay the highest rates because of fraud risk and high-value fund movements; commercial and private-client firms pay lower rates.
Claims history is the single biggest rating factor after practice area. A single moderate claim (£25k-£250k) typically adds a 75% premium increase; a major claim can triple the base rate and remain on your claims record for seven or more years.
The MTC (Minimum Terms and Conditions) set by the SRA require cover of at least £2m per claim for unincorporated firms and £3m for incorporated practices (solicitor companies and LLPs). Firms with larger client transactions should carry higher limits.
Worked example: Beacon Law LLP is a mixed-practice firm with £2,000,000 gross fees, 10 fee-earners, a clean five-year claims record and £5m cover. The base rate for a mixed practice is 1.5% of gross fees. No claims multiplier applies (1.0x). Cover at £5m attracts a 1.2x multiplier, and the firm is below the 20-fee-earner threshold so no size penalty applies. Indicative mid-point premium = £2,000,000 x 0.015 x 1.0 x 1.2 = £36,000 per year. The market range runs from £28,800 (low, 0.8x) to £50,400 (high, 1.4x). If the firm had a moderate claim on its record (£25,000 to £250,000) the claims multiplier would rise to 1.75x, pushing the mid-point to £63,000.
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Frequently asked questions
- Is PII premium tax-deductible?
- Yes. Professional indemnity insurance is an allowable trading expense for the firm and is fully deductible against profits. It is also exempt from VAT — there is no input VAT to reclaim, but you do not pay VAT on the premium either.
- How can I reduce my PII premium?
- The most effective levers are: reducing conveyancing as a proportion of gross fees; maintaining a claims-free record (claims accumulate and drive up premiums for years); strengthening AML controls and file management; and using a specialist solicitor PII broker who places multiple law firm books with underwriters and understands the market.
- What is the run-off obligation when closing a practice?
- When a solicitor practice closes, it must maintain run-off professional indemnity cover for six years after the date of closure. The run-off premium is typically 150-300% of the last in-practice premium. This is a material cash cost and should be factored into any succession or closure plan.
Need help interpreting your results?
These calculators give directional figures based on published rates. Your actual position depends on firm structure, basis period adjustments, existing capital contributions, and your specific revenue profile. We model the full picture as part of our advisory work.
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