When it comes to running a legal practice in Malaysia, professional liability risks are part of the job. From client fund handling to conflicts of interest and allegations of professional breaches, law firms today face exposure that can lead to serious financial consequences.
This is where Professional Indemnity Insurance (PII) comes in—protecting firms against the costs of legal defense, settlements, or damages.
But here’s the catch: under the Bar Council’s Mandatory PII policy, the total coverage for misconduct claims is capped at RM350,000 per policy year, no matter how many claims occur.
The question every firm should be asking is: Is RM350,000 really enough?
Understanding the Misconduct Limit in Mandatory PII
The Bar Council Mandatory PII wording makes it clear:
- The maximum amount payable for misconduct claims is RM350,000 in total, across the entire policy period.
- This is not RM350,000 per claim—it’s the aggregate limit, no matter how many misconduct claims arise within the year.
- The person committing the misconduct is not covered, but the firm and innocent partners remain protected.
- The firm may be required to assist the insurer in recovering costs from the wrongdoer if possible.
- This means that once the RM350,000 limit is reached, any additional misconduct claims are the firm’s financial responsibility.
Why RM350,000 Is No Longer Enough
In today’s environment, legal firms face risks far beyond what the mandatory coverage was designed to handle:
- Client fund disputes – Mismanagement allegations can involve millions.
- Conflicts of interest – High-value commercial cases carry higher financial stakes.
- Professional breaches – Compliance issues or administrative errors can escalate quickly.
Even a single serious misconduct claim could easily exceed RM350,000, leaving the firm and partners personally exposed.
How Minaris Top-Up PII Closes the Gap
With Minaris Top-Up Professional Indemnity Insurance, law firms can choose higher misconduct sublimits starting from RM500,000 and increasing based on their risk profile.
This offers:
- Enhanced Protection
- Higher misconduct coverage ensures your firm is financially safeguarded in high-stakes matters.
Customizable Limits
Options beyond RM500,000 give flexibility for firms of different sizes and risk exposures.
Peace of Mind for Partners
Compliance + Beyond
Meets Bar Council requirements while providing broader coverage for modern risks.
Real-World Scenarios Where Higher Limits Matter
A law firm managing client trust accounts faces allegations of mismanagement involving several million ringgit.
A conflict of interest claim arises from representing two parties in a major commercial dispute.
A junior partner’s error leads to a costly professional breach lawsuit against the entire firm.
In each case, the RM350,000 cap under mandatory PII would be insufficient, leaving the firm to pay the rest out of pocket.
The Benefits of Minaris Top-Up PII
- Higher Misconduct Sublimits – Starting from RM500,000 onwards.
- Fast Quotation & Policy Issuance – Quick turnaround for urgent needs.
- Multiple Coverage Options – Tailored to your firm’s size and risk exposure.
- Claims Support – Guided assistance throughout the claims process.
The Bottom Line
Your mandatory PII provides a baseline level of protection, but with misconduct claims capped at RM350,000, the coverage may fall short in today’s high-value legal landscape.
With Minaris Top-Up PII, your firm gains access to higher misconduct coverage, starting at RM500,000 and beyond, ensuring you’re protected against the financial impact of serious claims.
Lim Sing Yue is an Insurance Advisory Manager with a Bachelor Degree of Business Administration (HONS) and strong expertise in client servicing, sales operations, and strategic account management. With experience in multinational firms across the electronics and procurement sectors, she excels in delivering tailored insurance solutions with efficiency and precision.