Which type of insurance is compulsory by statute for a solicitor?

Professional indemnity insurance is a compulsory requirement for solicitors as it provides crucial protection against claims of negligence and malpractice arising from the provision of legal services. Given the nature of solicitors' work, which often involves significant responsibilities and the potential for substantial financial loss to clients, this insurance ensures that clients can recover damages if the solicitor fails to provide adequate professional advice or services.

The requirement for solicitors to carry professional indemnity insurance is grounded in regulatory frameworks that aim to maintain high professional standards and protect the interests of clients. This insurance serves to enhance public confidence in legal services, ensuring that clients have recourse in the event of professional shortcomings.

Fidelity guarantee insurance, while important, is not a statutory requirement for solicitors and covers different risks related to employee dishonesty. Legal expenses insurance typically covers costs associated with legal representation rather than providing protection for the solicitors themselves against claims, and while public liability insurance is necessary for some businesses to cover liabilities related to third parties, it is not specifically mandated for solicitors in the same manner as professional indemnity insurance.