Professional Indemnity Insurance

All practices regulated by the CLC must, as a condition of being licensed, have in place professional indemnity insurance (PII) to indemnify them for any civil liability incurred arising out of regulated services provided. The CLC runs a Participating Insurers Agreement and CLC regulated practices can seek cover from any insurer that is part of this scheme. This arrangement was put in place in June 2016. Among other things, it sets out a minimum level of cover of £2 million for each and every claim. It also ensures six years run-off cover at no additional cost when a practice closes with cover of £2 million in aggregate.

PII Renewal Round 2021

The Professional Indemnity Insurance  (PII)) market remains challenging, as seen in other parts of the legal sector and in the CLC regulated community at the time of the 2020 renewal.

CLC-regulated practices have until 30 June to renew their PII cover, with new policies beginning on 1 July 2021.

All practices should submit proposals to brokers as soon as they possibly can and preferably before the end of May. The CLC’s Risk Agenda 2021 includes some pointers on improving a practice’s chances of securing cover.

As ever, the CLC encourages practices to seek quotes from more than one PII scheme. Details of the five schemes that are part of the CLC’s Participating Insurers Agreement can be found below.

This year, the CLC will be following the progress of the renewal round more closely than ever. We are asking practices and insurers to update us weekly from late May onwards with details of whether they have cover agreed or not.

The CLC will contact PII leads in practices weekly for an update on progress. This will take the form of a brief capture of key data about the progress of their renewal and the terms they are offered and agree.

This information is vital to ensure that the CLC can take action to support those practices that are facing difficulties and to maintain consumer protection if a practice fails to secure cover and is forced to close.

Details of Insurers

The CLC encourages practices to see quotes from more than one insurer. Below is a list of approved insurers. Further details about each scheme can be found by clicking on the insurers below.

Gallagher CLC Scheme

Hera CLC Scheme

Howdens CLC Scheme

Marsh JLT CLC Scheme

Miller CLC Scheme

Background documents

Below you can read and download the relevant policies and documents.

CLC Professional Indemnity Insurance Terms (effective 1st July 2016)

Participating Insurers Agreement (sample agreement)

CLC Professional Indemnity Insurance Framework

CLC Professional Indemnity Insurance Code and Guidance

 

See below PII maximum excess limits permitted by annual turnover:

TurnoverBanded %Max Excess
£70,0000.5£3,500
£100,0000.5£5,000
£200,0000.5£10,000
£250,0000.3£16,900
£300,0000.3£18,400
£350,0000.3£19,900
£353,5000.3£20,005
£400,0000.3£21,400
£450,0000.3£22,900
£500,0000.3£22,400
£600,0000.2£26,400
£700,0000.2£28,400
£800,0000.2£30,400
£900,0000.2£32,400
£1,000,0000.2£34,400

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