With the Solicitors Regulation Authority (SRA) requiring a minimum level of Professional Indemnity Insurance cover and the cost of premiums remaining high, between 3% to 9% of annual turnover, with a median of 5%*, law firms are heading into yet another expensive renewal season. And for law firms already juggling rising operating costs, managing cash flow is becoming even more critical. Karl Leitelmayer, Sales Director (Tax), Premium Credit, explains how credit brokers can offer much-needed relief to their law firm customers.

The ongoing Professional Indemnity challenge for law firms
Professional Indemnity Insurance isn’t optional—it’s a regulatory must-have for law firms in England and Wales. In recent years, premiums have jumped due to several factors including an increase in claims, stricter underwriting, and ongoing regulatory scrutiny.

Even with the market steadying somewhat in 2025, Professional Indemnity Insurance costs are still significant. At the same time, law firms are facing higher running costs, rising salaries, and tougher competition. It all adds up to an annual financial crunch where firms have to part with a large chunk of cash for this cover right when they’d prefer to keep funds free for running or growing their business.

A popular payment option
Premium finance can help ease cash flow for those law firms about to renew cover. Instead of paying one big lump sum upfront, firms can spread the cost into monthly payments. This can ease cash flow pressures and leave more working capital in the business—something every firm needs, especially in uncertain times.

At Premium Credit, we’ve worked with law firms, through our credit broker partners, for decades, helping take the sting out of annual insurance renewals. With the Professional Indemnity Insurance renewal season approaching, it’s a good time for brokers to remind customers that premium finance is a sensible, practical way to manage finances.

Why spreading the cost makes sense
Premium finance is a straightforward way to take the pressure off. Paying monthly rather than in one big hit helps firms manage cash flow and avoid expensive overdrafts or loans.

Many successful, profitable firms use premium finance because it is convenient. It’s no different from leasing office equipment or spreading tax bills—it’s about keeping cash in the business where it can be put to better use.

This is where brokers can really add value by combining their understanding of the customer needs with the features of premium finance to get to a smart financial strategy.

What Premium Credit offers
At Premium Credit, we’ve developed a tailored finance product to support law firms, or indeed any business, who need Professional Indemnity Insurance in place, which is designed to ease the burden of big upfront payments.
Here’s what we offer:

• No deposit required, so firms can keep more of their cash
• Flexible payment terms, typically over 10 months but up to 18 months to meet the customer need
• Fast, straightforward application process with minimal paperwork
• Dedicated account managers who know the legal sector and work closely with brokers and insurers
• Custom options for larger premiums, ideal for firms with more complex needs

Our goal is simple. Help law firms meet their financial commitments without putting a strain on the day-to-day running of their practice.

Why brokers should be talking about Premium Finance
Professional Indemnity Insurance renewal season is a great opportunity for brokers—not just to help customers, but also to strengthen their own businesses. Brokers who offer premium finance often build longer-lasting customer relationships, offering real solutions to a real problem. Plus, it can create an additional income stream through commission.

Premium Credit supports brokers with:

• A user-friendly digital platform for instant quotes and quick applications
• Real-time updates on applications
• Dedicated broker support teams, especially for more complex cases
• Marketing and training resources to help brokers explain the benefits of premium finance

Brokers tell us that offering premium finance improves customer satisfaction, builds loyalty, and helps them stand out in a competitive market.

Planning ahead in a tough market
The legal sector is not immune to wider economic pressures. Insurers remain cautious, especially with firms in higher-risk areas, and when regulatory demands are increasing. All this means law firms need more flexibility than ever when it comes to managing their insurance cover.

Premium finance helps provide that flexibility. It allows firms to smooth out their costs and avoid draining their reserves in one go. Premium Credit offers a reliable finance solution even when market conditions are difficult.

Final thoughts
Professional Indemnity Insurance is unavoidable for law firms—but the financial strain it causes at renewal doesn’t have to be. Spreading the cost through premium finance is a smart, practical option that helps firms manage their obligations without restricting their ability to invest in their business.

For brokers, premium finance is a chance to offer real value, strengthen their own customer relationships and build business. We are ready to help law firms and their brokers navigate the renewal season with confidence.

To find out more, call us on 0207 191 2079 or email tax@pcl.co.uk or visit https://www.premiumcredit.com/products/tax-and-vat

*Solicitors Regulation Authority (SRA) reporting 2023