Solicitors in England and Wales are about to spend approximately £250m on compulsory professional indemnity insurance with little idea of what they are getting for their money.

As the 1 October renewal date for solicitors' PI insurance approaches, professional indemnity boutique law firm Legal Risk has warned that few solicitors have ever bothered to read their insurance policies.

Frank Maher, partner in Legal Risk, warned: "At best they are interested in price and how much they have saved since the end of the Solicitors Indemnity Fund.

"Little do they realise that low prices encourage insurers to take more points on policy cover."

Sandra Neilson, European practice leader for law firms' PI at Marsh, said: "There are a lot of law firms that think about costs and don't read policies, but there are an equal number, if not a greater number, that do think about what is covered."