Law Claims

The Law Society of South Australia is exempt from the requirement to hold an Australian financial services licence under the Corporations Act 2001 (Cth) in relation to the operation of the SA Professional Indemnity Insurance Scheme, and the Scheme is not regulated under the Insurance Act 1973 (Cth).

Professional Indemnity Insurance Scheme

The Law Society of South Australia has established and operates the Legal Practitioners Professional Indemnity Insurance Scheme (the PII Scheme) pursuant to s 52 of the Legal Practitioners Act 1981 (SA). The PII Scheme is approved by the Attorney-General each year.

Please click here for access to the PII Scheme documents, notification forms and other information on the PII Scheme.

The PII Scheme is compulsory for South Australian legal practitioners in private practice. There are some exceptions, for example, government lawyers, in-house lawyers or those who have applied for and have been granted exemptions by the Society.

The PII Scheme indemnifies a law practice against claims for civil liability incurred in connection with legal practice. The limit of indemnity under the policy is $2 million per claim, which includes defence costs.

All practising certificates issued by the Society are subject to the requirement to satisfy the insurance obligations under section 19 of the Legal Practitioners Act 1981 (SA). That section can be satisfied in one of three ways:

  • By participating in the PII Scheme either:
    • by personally making a contribution (there are also provisions for low income sole practitioners and barristers); or
    • by being employed by a law practice that has made such a contribution.
  • By being exempt from contributing to the PII Scheme. Exempt practitioners are currently those who are employed by a law practice (generally a law practice based interstate) or a community legal centre which has insurance cover equivalent to the cover provided by the PII Scheme, where that law practice has sought and obtained an exemption. The exemption application is available through the Ethics and Practice Unit of the Law Society.
  • Where the Society is satisfied that you are not engaged in private practice. For example if you are employed by a government department and only provide legal services to that employer or are employed by an entity that is not a law practice as defined by the Legal Practitioners Act 1981 (SA) and not exercising a right of private practice.

Any practitioner who seeks to practise outside of their government or in-house role must make a contribution to the PII Scheme and receive a certificate of insurance. If this is not done, the practitioner’s practising certificate is automatically suspended by operation of law. The practitioner would then be practising without insurance and without a valid practising certificate and may be the subject of disciplinary proceedings.

Law Claims

Law Claims manages notifications to the PII Scheme and handles claims pursuant to the provisions of the PII Scheme.

Law Claims also offers extensive Risk Management assistance to insured law practices, with a view to preventing common errors that lead to claims. Risk Management resources include Document Packages in a number of different practice areas, as well as the Practice Visit Program and specialised Risk Management CPD sessions.

See the Risk Management page for further information and access to the resources.

Notifying a claim

What is a claim?

A claim for the purposes of the PII Scheme is defined to mean:

  1. a demand for, or an assertion of a right to civil compensation or civil damages; or
  2. an intimation of an intention to seek civil compensation or civil damages.

If you have had a claim made against you or circumstances have arisen which you think might give rise to a claim in the future, please contact Law Claims to discuss the matter on (08) 8410 7677.

Notifying a claim

The PII Scheme requires that practitioners must notify Law Claims in writing as soon as practicable of any claim made against them or their law practice.

To provide Law Claims with formal notification, the following forms need to be completed:

Form 1 - Notification of Claim or Circumstances
Form 2 - Authority of Nominated Representative

To provide Law Claims solicitors with confidential and privileged instructions, please complete and submit:

Form 3 – Instructions to Claims Solicitors

The above forms once completed need to be returned to Law Claims at:

Level 11, 178 North Terrace
Adelaide South Australia 5000
GPO Box 2253, Adelaide SA 5001
[email protected]

To speak to one of the Law Claims solicitors, please call (08) 8410 7677.

Notifying circumstances

Early notification to Law Claims of circumstances that might give rise to a claim is encouraged. This affords Law Claims the opportunity to provide early advice and assistance, and it maximises the potential for rectification and minimisation of loss. If you have any queries you should call Law Claims to discuss the matter on (08) 8410 7677.

Contribution/administration fee

The cost of participation in the 2026 PII Scheme for South Australian participants is $2,730 plus GST (standard contribution) plus $600 plus GST (administration fee) per practitioner or conveyancer.

Contribution reductions are available in some circumstances. More details about the contribution and the administration fee are set out in the Frequently Asked Questions.

Contribution reduction

Certain practitioners are eligible to make a reduced contribution to the PII Scheme.

Low income sole practitioner contribution reduction

The application for reduction can be found here: Form E.

Eligibility criteria

From 1 July 2026, pursuant to the PII Scheme, sole practitioners and incorporated legal practices with a sole principal who fit the low income sole practitioner eligibility criteria can apply to the Society for a reduction of their PII Scheme contribution. To qualify for the reduction, you must be a practitioner or an incorporated legal practice with a single legal practitioner director who:

  • is the principal of a law practice established in SA;
  • is not practising in partnership;
  • does not employ any legal practitioners;
  • does not engage any other legal practitioners as consultants; and
  • whose gross fee income for the relevant period does not exceed $100,000.
    • (LISP law practices)

LISP law practices whose gross fee income for the relevant period does not exceed $50,000 can apply to pay a reduced contribution of 20% of the standard contribution, plus GST.

LISP law practices whose gross fee income for the relevant period is more than $50,000 and does not exceed $100,000 can apply to pay a reduced contribution of 50% of the standard contribution, plus GST.

Gross fee income

The Society may require any insured to provide information as to the gross fee Income of any law practice.

Gross fee income in relation to a practitioner, means the gross income earned by the practitioner from legal practice (including income derived by a service administration or trustee company or trust insofar as its activities relate to the practitioner's practice except any such income derived from the practitioner or a practice of which he or she is a partner or director), but does not include –

  1. Income derived by a company from the investment of money;
  2. Salary or wages earned by a practitioner in relation to his or her employment by any other practitioner; or
  3. Fees or other income earned by a practitioner who is a director or employee of a practitioner for which he or she is liable to account to his or her employer.

The gross income disclosed on your tax return for the relevant financial year, in accordance with either the cash based accounting system or accrual based accounting system, will fall within the above definition. All business and overhead expenses, and any other deductions are irrelevant.

Application process

LISP law practices which estimate that their gross fee income for the coming period will not exceed $100,000 can apply for the reduction of their contribution prior to the commencement of the relevant period.

The estimate of anticipated gross fee income must be bona fide and verifiable. Practitioners may be asked to justify the calculation if they have previously qualified for the reduction but then exceeded the threshold. The reduction is not a means by which practitioners can pay their contribution by instalments.

Reporting

Practitioners granted the reduction must adhere to certain threshold reporting and additional contribution requirements (these are set out clearly on the Form E).  Breaches of these requirements may be required to be reported by the Society to the Legal Profession Conduct Commissioner pursuant to section 14AB(1)(c) of the Legal Practitioners Act 1981 (SA).

Barrister contribution reduction

Barristers are eligible to make a reduced contribution to the PII Scheme. The application for reduction can be found here: Form F.

Eligibility criteria

If a law practice is constituted by a sole practitioner and the practitioner conducts legal practice as a barrister (as defined in the PII Scheme) and holds a BA category practising certificate the contribution shall be 20% of the standard contribution. 

Application process

Barristers fitting the eligibility criteria can apply for the reduction of their contribution prior to the commencement of the relevant period.

Reporting

Barristers granted the reduction must adhere to the eligibility criteria (which are set out on the application Form F).

Breaches of these requirements may be required to be reported by the Society to the Legal Profession Conduct Commissioner pursuant to section 14AB(1)(c) of the Legal Practitioners Act 1981 (SA).

Conveyancers

Law practices must pay a standard contribution for each registered conveyancer employed by the law practice.

Claims History Report request

If a law practice requires a claim history report under the PII Scheme for the purpose of top-up insurance, please contact [email protected].

Due to the confidential nature of the content of this report the request should be made in writing from an authorised individual — a partner, director, finance manager, CE/CEO, or practice manager.

Frequently Asked Questions

How much does the participation in the PII Scheme cost?

Participation in the PII Scheme will generally cost $2,730 plus GST per practitioner or conveyancer for the standard contribution plus $600 plus GST per practitioner or conveyancer for the administration fee.

What is the contribution?

The contribution is the amount paid into the professional indemnity fund to participate in the PII Scheme.

The contribution payable per practitioner or conveyancer (excluding GST) is determined as a percentage of $2,730.00 plus applicable GST as follows:

  • Barristers: If the law practice is constituted by a sole practitioner and the practitioner conducts legal practice as a barrister, (as defined in the PII Scheme) the contribution shall be 20% of the standard contribution.
  • Sole practitioners other than barristers: If the law practice is a sole practitioner (but not a low income sole practitioner) the contribution shall be 100% of the standard contribution.
  • Interstate participants: For interstate practitioners and interstate conveyancers, the contribution shall be 170% of the standard contribution.

There are different rules with respect to low income sole practitioners which are set out here under Low income sole practitioner contribution reduction. See also FAQ re LISP below.

What is the administration fee?

The administration fee is a separate charge, in addition to the contribution to the professional indemnity fund, and it is collected by the Law Society as income to the Law Claims budget (see Annual Report).

How much is the administration fee?

The administration fee for the 2026/27 period of insurance is $600 plus GST of $60 for each practitioner or conveyancer at the census date.

What is the census date?

The census date is the date on which the Society counts the number of practitioners and conveyancers for the purpose of calculating the contribution of the law practice. The date changes every year. In 2026, the census was conducted on 20 May 2026.

Do I get a refund for my employee if they leave at any stage after the census date?

No.

Do I have to pay a contribution for an employee if they start after the census date?

No, if the employee is a local legal practitioner or a conveyancer registered in South Australia.

Yes, if the employee is an interstate legal practitioner or a conveyancer registered in another State.

If I commence a new law practice within the policy year is the contribution pro-rated?

If before 31 December, no. If after 1 January and not a low income sole practitioner or barrister, the contribution will be pro-rated by 50%.

If I commence a new law practice within the policy year is the is the administration fee pro-rated?

No.

If I leave private practice or employment as in-house or government solicitor and wish to commence practice as a barrister am I required to contribute to the PII Scheme?

Yes, because your practice as a barrister will be a new law practice.

If I employ a consultant, are they covered under my certificate of insurance?

If the consultant provides services to the law practice or to clients of the law practice and has not been determined by the Society to be an independent contractor, then the consultant is covered under the certificate of insurance to the law practice.

Does my law practice have to pay a contribution for consultants?

Yes.

What is an independent contractor?

An independent contractor is a practitioner who is determined by the Society to be an independent contractor in accordance with guidelines and checklists from time to time. For the current checklist, refer to Form S.

What do I do if I disagree with the calculation of the contribution for my law practice?

If you believe that the contribution payable is incorrect contact Lawguard Management Pty Ltd (via Law Claims, GPO Box 2253, Adelaide SA 5001 or [email protected]) in writing setting out the basis of the disagreement.

Please note the contribution must be paid in full by 30 June 2026 and disputes may take time to be addressed. It is recommended that the law practice makes payment in full of the contribution that has been billed and in the event an adjustment is resolved by Lawguard Management Pty Ltd, a reimbursement will be sent in due course.

How much is the 2026/27 contribution for a low income sole practitioner (LISP)?

If the law practice is a low income sole practitioner or an incorporated legal practice with a single legal practitioner director:

  • the contribution shall be 20% of the standard contribution in the event that the gross fee income of the practitioner in the period of insurance does not exceed $50,000; or
  • the contribution shall be 50% of the standard contribution in the event that the gross fee income of the practitioner in the period of insurance exceeds $50,000 but does not exceed $100,000.

How do I calculate my gross fee earnings to take advantage of the lower contribution for low income sole practitioners?

Clause 1.24 of Schedule 4 of the PII Scheme documents provides that:

Gross fee income in relation to a law practice, means the gross income earned by the law practice from legal practice.

To apply for a reduced contribution, use Form E.

What if I am a low fee earner or starting up a practice for the first time where I employ other practitioners?

There is no reduction of contribution. The low fee income reduced contribution is restricted to sole practitioners and incorporated legal practices with a single legal practitioner director without employee practitioners.

How much is the contribution for restricted practising certificates?

No amount shall be payable in respect of a practitioner with a restricted practising certificate who is in the first year of supervised practice.

Fifty percent (50%) of the standard contribution shall be payable in respect of a practitioner with a restricted practising certificate who is in the second year of supervised practice.

If I am absent or on leave at PC or PII renewal time and/or I am unable to pay the PII contribution prior to close of business 30 June, what is the impact on me and/or my law practice?

If the law practice has not made payment of the relevant contribution by 30 June 2026 none of the practitioners in the law practice are permitted to practise on 1 July 2026 or thereafter. The practising certificates will not be issued until full payment of the relevant contribution has been made.

Section 19 of the Legal Practitioners Act 1981 (SA) states that where a PII Scheme under section 52 of the Legal Practitioners Act 1981 (SA) is in force requiring legal practitioners to be insured against liabilities that may arise in the course of, or in relation to, legal practice, a practising certificate cannot be issued or renewed unless the practitioner has insurance in place.

The Legal Practitioners Act 1981 (SA) provides for the suspension of any practising certificate in respect of any practitioner who has failed to obtain insurance and who is required to be insured.

Do practising certificate categories have any impact on the contribution payable?

No.

If I cease sole practice within a policy year am I entitled to any refund?

No.

If a practitioner, conveyancer, or associate leaves the law practice within a policy is the law practice entitled to any refund, or any reimbursement from any law practice that may employ such person?

No.

If a practitioner, conveyancer, or associate leaves the law practice within a policy year is the law practice entitled to a refund from the practitioner?

No.

In the event of a claim what is the excess payable by the law practice?

The base excess is stated on the law practice's certificate of insurance. It may be multiplied by x2 if clauses 4.4, 4.6, 4.7 and 4.8 of the Policy of Insurance apply or by x3 if clause 4.5 of the Policy of Insurance applies.

Can I arrange my own insurance and apply for an exemption from my obligation to participate in the PII Scheme?

No. All practitioners wishing to hold a South Australian practising certificate and engage in private legal practice in South Australia (with the exception of those eligible for exemption under the Legal Practitioners Act 1981 (SA)) are required to hold professional indemnity insurance through the PII Scheme. The Society has developed an exemption protocol. A copy of the protocol is available here. If you wish to obtain a copy of the exemption application form, you should request one from the Ethics and Practice Unit.

Can the Law Practice purchase top-up insurance from the Society?

No. The Society does not arrange top-up or excess insurance. Law practices may wish to take out top-up insurance to have more than the amount of cover provided by the PII Scheme (currently $2,000,000 inclusive of defence fees per claim).

You are welcome to contact the Society’s brokers, Pillar Brokerage. They are able to provide advice on, and arrange, top-up professional indemnity insurance. Contact Will Laundy at Pillar on mobile: 0438 772 216, 191 Pulteney Street, Adelaide SA 5000 website: pillarbrokerage.com.au for further information.

While there is no requirement to use any particular broker or insurer for this purpose, we would suggest that you speak with a broker who is experienced in placing professional indemnity insurance for legal practitioners.

Professional Indemnity Insurance

T: (08) 8410 7677
E: [email protected]

View all Scheme documents, forms and other information

Risk Management

T: (08) 8410 7677
E: [email protected]

View all Risk Management resources