Quinn Insurance will stop providing professional indemnity cover to solicitors in England and Wales from October.
Quinn was placed in administration by the Irish financial regulator last April following breaches of solvency rules.
It currently provides professional indemnity insurance to over 2,900 solicitors' firms in England and Wales, with a focus on sole practitioner operations.
The company said that it would not be re-entering the market when the policies come up for renewal on 1 October.
Solicitors must have professional indemnity insurance to cover the potential costs of defending claims and paying damages in case they are sued by a client.
It is thought this has been a particularly poorly performing part of the Quinn business.
Quinn's decision to leave the market means premiums are likely to rise.