Conveyancing and High-Risk Areas: Impact on PI Insurance Premiums

Professional indemnity (PI) insurance is a lifeline for solicitors. It protects against claims of negligence, errors, or omissions that can arise in the course of legal work. Yet, not all areas of law are treated equally by insurers. Conveyancing, in particular, has long been seen as a high-risk area, and that perception has a direct impact on the premiums firms pay for PI insurance. If you run a legal practice in the UK, you’ve likely seen first-hand how conveyancing-heavy workloads can make securing affordable cover more challenging.

The question is why. Why do insurers see conveyancing as riskier than, say, wills and probate? And more importantly, what can solicitors do to manage these risks and avoid excessive premium hikes?

This article breaks down the factors that shape PI insurance for solicitors, with a focus on conveyancing, other high-risk practice areas, and practical ways firms can protect themselves while keeping premiums under control.

Why Conveyancing is Viewed as High Risk

Conveyancing sits at the heart of property transactions, which are often the most significant financial commitments people make. A single error—missed searches, overlooked restrictions, or delays—can cause financial loss, disputes, and even collapsed sales.

From an insurer’s perspective, that means higher claim potential. For example, a missed planning restriction could result in a homeowner being unable to extend their property as intended, leading to a costly claim against the solicitor. Even relatively small mistakes can snowball into large financial consequences because property values are high, and buyers are emotionally invested.

Another reason insurers are cautious about conveyancing is the sheer volume of transactions. Unlike niche legal work, conveyancing tends to be high-volume, which increases the statistical likelihood of mistakes. A firm handling hundreds of transactions a year may only have a small percentage of errors, but even a handful of claims can be significant.

Other High-Risk Areas Beyond Conveyancing

While conveyancing draws the most attention, insurers also flag other practice areas as higher risk:

• Commercial Property Transactions: Similar to residential conveyancing, but with higher values and more complex legal structures.
• Litigation: Missed deadlines, procedural errors, or poor advice can lead to claims.
• Corporate and Commercial Work: Errors in drafting or advising on contracts, mergers, or acquisitions can result in substantial financial consequences.
• Trusts and Probate (in certain cases): Mistakes in administering estates or handling large trusts can cause disputes among beneficiaries.

Each of these areas carries risks that may not be as obvious as conveyancing but still attract insurer scrutiny. Understanding how your firm’s practice areas are weighted by insurers can give you clarity on why premiums rise or fall.

How Conveyancing Impacts PI Insurance Premiums

The influence of conveyancing on PI insurance for solicitors is twofold:

• Higher Baseline Premiums: Firms with a significant percentage of their income from conveyancing almost always face higher starting premiums. Insurers factor this risk into quotes from the outset.
• Claims History Weight: Insurers pay close attention to claims history in conveyancing. Even if a claim was minor or settled quickly, a history of conveyancing-related issues can dramatically affect renewal quotes.

For example, a small high-street firm handling 80% conveyancing might see premiums 20–30% higher than a similar-sized firm with a more diversified workload. The risk perception isn’t just about how much conveyancing you do—it’s about how you manage it, the controls in place, and your track record.

Common Triggers for Claims in Conveyancing

Understanding what typically leads to PI insurance claims can help solicitors mitigate risks before they turn into costly problems. Some of the most common triggers include:

• Failure to identify restrictive covenants that limit how a property can be used.
• Overlooking planning permissions or building regulation approvals.
• Delays in completing transactions leading to financial loss or collapsed deals.
• Inadequate checks on title deeds or failure to spot ownership disputes.
• Miscommunication with clients about costs, timelines, or responsibilities.

These issues often boil down to process management. Firms without robust systems for double-checking, documenting, and reviewing are more exposed to mistakes slipping through.

Practical Steps to Reduce Risk and Premiums

While insurers may view conveyancing as high risk, there are practical steps solicitors can take to demonstrate control and potentially negotiate more favourable premiums:

1. Invest in Training and Supervision: Regular training for fee earners on evolving conveyancing risks, combined with strong supervision policies, shows insurers you take risk seriously.
2. Implement Clear Checklists and Protocols: Structured workflows for title searches, planning checks, and client communications reduce the chance of human error.
3. Leverage Technology: Case management software can flag missed deadlines or incomplete tasks, helping to prevent costly oversights.
4. Document Everything: Detailed file notes, client communications, and signed acknowledgments help defend against negligence claims.
5. Diversify Workload: If feasible, balancing conveyancing with lower-risk areas can help reduce overall risk exposure and make premiums more manageable.

For example, one firm we advised had more than 90% of its income from conveyancing. By gradually expanding into family law and wills and probate, they reduced that figure to 60%. At renewal, their insurer viewed them as a more balanced practice, leading to a premium reduction.

The Role of the Insurer-Solicitor Relationship

PI insurance for solicitors isn’t just about ticking boxes. The relationship with your insurer or broker plays a huge role. Transparent communication about your firm’s risk management measures can make a difference.

If you’ve invested in new case management systems, staff training, or additional supervision layers, highlight these when applying for or renewing your policy. Insurers want reassurance that you are proactively managing the areas they see as high risk. Often, these discussions are the difference between a standard premium and an inflated one.

The Importance of Forward Planning

Too many firms leave PI insurance renewal to the last minute, which weakens their negotiating position. A smarter approach is to start the process months in advance. This gives you time to:

• Gather evidence of improved risk management.
• Shop around for competitive quotes.
• Address any weak spots in your claims history or workflow.

Planning ahead not only helps you secure better terms but also reduces the stress of last-minute surprises.

Conclusion:

Turning Risk into Manageable Costs Conveyancing will likely always be considered a high-risk area by insurers, and premiums for solicitors with heavy conveyancing workloads will reflect that. But risk doesn’t have to mean uncontrollable costs. By understanding why insurers view conveyancing as high risk, identifying common pitfalls, and putting robust processes in place, solicitors can present themselves as lower-risk clients.

Solicitors' PI insurance is about more than meeting regulatory requirements. It’s about protecting your firm’s reputation and financial stability. If you can show insurers that you’ve invested in risk management, training, and systems, you stand a far better chance of negotiating premiums that reflect your true risk, not just the sector average.

At the end of the day, PI insurance is a partnership. The more proactive you are in demonstrating good practice, the more likely insurers are to respond with fair pricing.