Professional Indemnity (PI) coverage should be reviewed, not just renewed, it has been suggested.

According to The Lawyer, sole practitioners and companies with up to ten partners are most likely to have inadequate policies.

However, "a number of mid-tier firms have been on shaky ground by omitting to renew their policies", the publication adds.

The Law Society reminds practices converting to LLP status that they should obtain PI cover of £3 million per claim before applying to the SRA for recognition.

Marc Riches, Assistant Director of Lloyds Broker PYV Legal, added: "It is important to seek the advice of a specialist broker to ensure that your cover meets not only the minimum regulatory requirements but perhaps more importantly the needs of the business specifically."

He continued: "If you buy only the minimum cover stipulated by your regulators you could be in a position where you may be underinsured for the size of your practice."