Sole practitioners and small law firms have received a boost ahead of the professional indemnity insurance (PII) renewals season, with news that insurance giant XL will provide them with cover.

As revealed by the Gazette last week, XL, a new entrant to the solicitors’ PII market, has filed a qualifying insurer agreement with the Solicitors Regulation Authority. XL declined to give further details at the time, but today revealed that it will provide PII for sole practitioners and firms with up to three partners.

Insurer Hannover Re recently entered the market to provide compulsory cover for firms with four or more partners.

Law Society chief executive Desmond Hudson said: ‘Last year some small firms saw the market harden against them. I am delighted that another insurer has decided to enter the PII market for small firms. Any increase in the supplier base can only improve the prospect for securing cover on more reasonable terms.’