QLS Approves 15% Reduction in Professional Indemnity Insurance Levies for 2026/27
Legal Practitioners to Benefit from Lower PI Insurance Premiums
0
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
The Queensland Law Society (QLS) has announced a significant 15% reduction in professional indemnity (PI) insurance levies for the 2026/27 period.
This decision, approved by the QLS Council in April 2026, is set to benefit legal practitioners across Queensland by lowering their insurance premiums.
The reduction follows another year of strong performance by the insurance scheme, managed by QLS in conjunction with Lexon Insurance. Lexon CEO Michael Young attributed the improved financial position to the profession's focus on risk management, which has resulted in consistently low claims costs. This financial stability has enabled meaningful savings to be passed directly back to the profession.
In addition to the substantial rate reductions, all major scheme innovations introduced in recent years will remain in place for 2026/27. These include:
A 7.5% No Claims Discount, benefiting more than 93% of eligible practices.
Relaxed claims loading thresholds, with loadings now only applied when a practice's loss ratio exceeds 100%, up from the previous 60%. Any annual loading is also capped at 4% of the expected claim cost.
The reduced excess structure introduced last year.
The 15% Early Management Response (EMR) discount, subject to a $1,000 minimum and $40,000 maximum, also remains a core feature of the levy model, with more than 55% of practices currently participating.
Practices seeking additional protection beyond the standard $2 million per-claim limit can again access optional top-up insurance through Lexon. Applications can be made via the QLS renewals portal.
QLS and Lexon have reaffirmed their commitment to maintaining broad and favourable policy terms, including:
$2 million per claim in most cases.
Unlimited number of claims.
Innocent party protection.
Free run-off cover.
These features remain central to the scheme's intent of providing comprehensive, reliable protection for Queensland practitioners.
Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.
Recent industry reporting on ASIC’s continued attention to product governance is a useful warning for Australian professionals who help design, recommend, distribute or review financial products. While design and distribution obligations are usually discussed as a licensing and compliance matter, they can also create a professional indemnity exposure when advice, documentation or oversight falls short. - read more
Recent insurance market commentary has again highlighted a growing challenge for Australian professional service firms: cyber incidents are no longer just an IT problem. When a system outage, data handling error, failed implementation, software defect or poor security recommendation causes a client financial loss, the dispute can quickly move into professional indemnity territory. - read more
Fresh small business finance reporting has put insolvency and cash-flow pressure back near the top of the risk agenda. While headlines often focus on company failures, tax debt, late payments and tighter household spending, the professional risk message is broader: when clients are under financial strain, expectations harden and disputes can escalate quickly. - read more
Fresh industry attention on ASIC’s internal dispute resolution data has put complaint handling back in the risk spotlight for financial services firms, advice practices and the businesses that support them. While IDR reporting is often viewed as a compliance obligation, it can also reveal the early stages of a professional indemnity exposure: a dissatisfied client, a disputed recommendation, a delayed response, an alleged error or a breakdown in communication. - read more
Fresh industry attention on ASIC's expectations for compensation arrangements is a timely reminder that professional indemnity insurance should not be treated as a once-a-year renewal task. For Australian professionals who provide advice, compliance support, financial services, consulting, design, technology or outsourced business services, the adequacy of cover depends on how closely the policy matches the work actually being performed. - read more
No comments yet. Be the first to share your thoughts.