Like all businesses, law firms have seen a rise in operating costs in 2025 due to wage increases, fiscal policy changes, rising energy prices and broader economic pressures. As the final quarter of the year approaches, law firms are entering professional indemnity insurance renewal season, with the cost of premiums remaining high, at between 3% and 9% of annual turnover, with the most common amount being 5%.

With the Solicitors Regulation Authority (SRA) requiring all law firms in England and Wales to maintain Professional Indemnity Insurance, many practices are once again preparing for a challenging renewal season.

Solicitors tend to have more litigated claims than any other sector. Of the almost 800 litigated professional indemnity claims in England and Wales since 2020, 56% were experienced by solicitors.**

Karl Leitelmayer, Sales Director - Tax, Premium Credit, said: With premiums often among the largest annual costs for professional services firms, renewal season can create significant financial strain. Being able to spread the cost of cover into manageable instalments can help to ease pressure on cash flow and free up working capital which can be used to finance other costs, helping businesses grow.”