What happens when a solicitor PII claim is made and what can a firm do to protect itself?
When a solicitor PII claim arrives, it rarely comes quickly. It can surface years after the original transaction, long after the file has been closed and the fee earner who handled the matter has moved on. Alexandra Henley, professional indemnity specialist at Konsileo, has worked through solicitor PII claims first-hand. Her view: the firms that fare best are the ones with a clear paper trail before anything goes wrong.
What happened in this conveyancing PII claim and how did it unfold?
A residential conveyancing transaction completed without issue. The property was a coastal home, purchased with plans that later evolved into short-term holiday letting. When the owners investigated listing the property on Airbnb, they discovered a restrictive covenant preventing exactly that and the intended retirement income disappeared overnight.
A claim followed, alleging the firm had failed to properly highlight the restriction during the conveyancing process. The client’s case was straightforward: had they understood the covenant and its implications, they may not have proceeded with the purchase at all. Damages were based on the loss of future earnings from the planned letting income.
With the potential for a lengthy and costly defence, insurers took a commercial decision to settle.
What was the root cause of the solicitor PII claim?
There was no evidence on file that the restrictive covenant had been properly highlighted or explained to the client. The issue had been handled by a more junior member of the team, and the oversight and documentation that should have supported that work wasn’t there.
The claim wasn’t brought because the solicitor didn’t notice the covenant. It was brought because the client had no record of having been told about and neither did the firm.
What surprised the firm about the PII claims process?
The claim was notified many years after the transaction completed. By the time it landed, insurers had to go back to a historic file to assess whether there were grounds to defend. That process took time and highlighted just how complex it can be to investigate claims that relate to work done years earlier.
Insurers initially considered whether the matter could be defended. Following their review, they concluded that a commercial settlement made more sense than escalating defence costs. For the firm, the length of the process was a reminder that PII claims don’t resolve quickly and that the burden of demonstrating what was done falls on whoever holds the file notes.
What could the firm have done differently?
Strong supervision and quality control procedures are the most effective defence against this type of solicitor PII claim, not just for compliance, but for the firm’s ability to defend itself if something is ever challenged.
Practically, that means regular file reviews, clear escalation procedures when issues are identified, and documented checklists to confirm key steps have been completed. It also means making sure that advice is communicated to clients clearly and recorded in writing, not just discussed on a call and left undocumented.
No process eliminates human error. But firms with strong systems can both reduce the likelihood of mistakes and put themselves in a significantly stronger position if a claim does arise.
How common is this type of solicitor PII claim?
Conveyancing remains one of the higher-risk areas of legal practice, high transaction volumes, tight deadlines, multiple parties, and significant financial consequences if something goes wrong. This type of claim wouldn’t be considered unusual from an underwriting perspective, but it wouldn’t be dismissed lightly either. A claim like this affects a firm’s claims history and risk profile, which feeds directly into PII renewal terms.
What’s the one thing every solicitor should take away from this PII claim?
If it isn’t documented, it can be difficult to prove it happened.
Even where a solicitor has identified and discussed a restrictive covenant or other title issue with a client, the absence of clear file notes or written advice can significantly weaken the firm’s position when defending a solicitor PII claim. The conversation happened. The advice was given. But without an audit trail on file, that’s very hard to demonstrate.
Identify the issue. Explain it clearly. Record it in writing. That sequence, done consistently, is the single most effective protection a conveyancing firm has against a PII claim.
Alexandra Henley — Professional Indemnity, Konsileo
30th July 2026
