New insurance designed with freelance solicitors in mind
Travelers launches professional indemnity product for freelancers
In November 2019, the Solicitors Regulation Authority (SRA) changed its regulations to allow solicitors to trade outside of the traditional ‘legal entity’ models.
The SRA uses the term ‘freelance solicitor’ to describe a self-employed solicitor who is:
- Practising on their own and does not employ anyone else in connection with the services they provide.
- Practising in their own name (rather than under a trading name or through a service company).
- Engaged directly by clients with fees payable directly to them without the practice itself being authorised.
But following this path requires solicitors to meet several requirements, including taking out and maintaining “adequate and appropriate” insurance to protect themselves against the professional risks they face.
That’s why Travelers has developed a new professional indemnity insurance product specifically for freelance solicitors – to provide these professionals with an additional option to manage their commercial risk and professional reputations as they develop and grow their businesses. The Travelers team includes many qualified solicitors who bring experience from diverse areas of the law. This has helped inform the development of the product as an additional resource that freelance solicitors can turn to for business protection.
Key features
Much like the range of freelance solicitor practices themselves, this professional indemnity insurance protection is designed to be broad. Available limits for the product range from £250,000 to £2 million. The cover can be offered on an aggregate or any-one-claim basis, with defence costs considered as either part of, or in addition to, the limit. It carries a minimum excess amount per policy of £500 for every claim. The cover is currently provided only for legal services undertaken within England and Wales by the freelance solicitor. And the policy wording, although more restrictive than the SRA’s minimum terms and conditions, has been based on this wording.
“Travelers has a long history of insuring solicitors’ professional indemnity risks and we want to provide options to help protect not only law firms of all sizes, but also individual solicitors with freelance practices,” said James Graham, Director Professional Indemnity for Travelers Europe. “As the legal sector evolves, our insurance solutions need to evolve with it.”
For additional information about Travelers Freelance Solicitors Professional Indemnity Insurance, contact your local Travelers representative, visit travelers.co.uk/solicitors or call 0700 22 22 999.
Authored by Travelers
About Travelers
We wrote the first auto insurance, the first aircraft liability insurance, and even the first personal accident cover for astronauts.
In today’s fast-changing world, this heritage of adventure really counts. With an extended network of underwriting, claims management, and industry experts in 125 countries, we’re here to insure your clients’ ambitions – no matter their size and scope. Our expertise and experience deliver policies that help them continue their journey.
With businesses facing ever more emerging and evolving issues, our suite of insurance products offers bespoke cover for each risk, and our commitment to genuine, caring partnerships means we’ll always be there to advise and support our clients and our broker partners, – whatever the future holds.
The Travelers Companies, Inc. (“TRV”) is a leading provider of property liability insurance for motor, home and business. The Group has more than 30,000 employees and operations in the United States, Canada, UK and Ireland.
The group has total assets of approximately $110 billion, shareholders’ equity of $26 billion and total revenue of $32 billion, as of December 31, 2019. Our European based operations offer our customers a wide range of coverage through Travelers Insurance Company Limited, Travelers Syndicate Management Limited (Syndicate 5000 at Lloyd’s), Travelers Underwriting Agency Limited and Travelers Insurance Designated Activity Company.