Update on PI insurance for NSW solicitors for 2025-26
2 May 2025
ABC Insurance is receiving strong interest in our professional indemnity insurance for the 2025/26 year.
Based on these enquiries and feedback received, our premiums for $2 million of primary cover will be significantly lower, on average, than those offered by Lawcover Insurance. In addition, our policy is broader and includes inquiries and other cover not offered by the alternative provider.
ABC is ready and keen to provide you with a quote. Unfortunately, while ABC continues to await approval from the Attorney General of NSW, ABC will defer providing quotes for those law practices which rely on a policy approved by the Attorney General for practising certificate purposes.
Given the Attorney General assured ABC that he would make a decision for this coming year, and given the practising certificate cycle commenced on 1 April 2025, we assume that a decision in respect of approval of ABC’s policy must be imminent.
We are aware that the Attorney General of NSW obtained independent advice confirming that ABC’s insurance policy meets the objective standards in s 210(1) of the Legal Profession Uniform Law (LPUL), including the Minimum Standards.
As previously mentioned, both the Law Society of NSW and the Attorney General had the opportunity to allow competition to flow automatically for all NSW solicitors by allowing the approval pathway in s 210(1) of the LPUA to remain open. Unfortunately, they chose not to do so.
It is abundantly clear how entrenched the opposition to choice and competition is and the extent of the agitation in favour of maintenance of the monopoly.
ABC continues to raise concerns that conduct in support of the monopoly is anti‐competitive and has expressed these concerns to Councillors of the Law Society of NSW, the directors of their wholly owned subsidiary, Lawcover Insurance, and the Attorney General. Other concerns, including in relation to probity and fairness, have also been raised with the Department of Communities and Justice, the Attorney General, and have been brought to the attention of the Premier of NSW as well. Further avenues are also being explored.
It appears that even the threat of competition has borne some fruit as Lawcover Insurance has announced that it has for this policy year taken some steps “to bring [its policy] wording in closer alignment” with the Minimum Standards.
You may also wish to:
- Write to the Attorney General of NSW in support of approval of ABC Insurance’s policy as soon as possible, e.g. by email to office@daley.minister.nsw.gov.au
- Write to the Council of the Law Society of NSW to urge active support for competition and to clarify whether Lawcover Insurance’s policy meets the minimum standards, e.g. by email to lawsociety@lawsociety.com.au
Additional Information
ABC Insurance (ABC) has been seeking to offer professional indemnity insurance to solicitors practising in NSW, with an application submitted in accordance with s 95 of the LPUAA in November 2022.
As previously mentioned, both the Law Society of NSW and the Attorney General of NSW had the opportunity to allow competition to flow automatically for all NSW solicitors by allowing the approval pathway in s 210(1) of the LPUA to remain open. They decided not to do so.
On 17 March 2025 ABC was informed, belatedly, that the Attorney General had approved Lawcover Insurance’s policies on the 26 of February 2025, almost 3 weeks earlier.
The Attorney General’s decision had the effect of extinguishing the approved status of ABC’s policies in accordance with s 210(1) of the LPUA, for the 2025/26 year.
The Attorney General assured ABC months ago that he would provide a decision in respect of ABC’s policies for the 2025/26 year.
The approval process adopted by the Department of Communities and Justice (DCJ) on behalf of the Attorney General remains opaque, including the timing of a decision. ABC is not aware of any matter that is outstanding that is relevant to the Attorney General’s authority under s 95 of the LPUAA.
It is unclear why ABC’s application is still pending while the policies of the Law Society’s wholly owned and controlled subsidiary, Lawcover Insurance, were approved well ahead of the practising certificate period. Probity and fairness would suggest that they should have been dealt with at the same time.
Solicitors continue to express their concerns to ABC at the uncertainty created by the delay, and the lack of choice and competition, particularly having regard to the mandatory nature of the insurance for practising certificate purposes.
ABC has raised serious concerns about the process conducted by the DCJ on behalf of the Attorney General. These concerns have been raised with the DCJ, the Attorney General and have also been brought to the attention of the Premier of NSW.
ABC is committed to the introduction of competition and choice, for the benefit of the legal profession and the people of NSW.