21 Feb SRA’s Professional Indemnity Cover Rules Cause Confusion
SRA’s Professional Indemnity Cover Rules Cause Confusion
Solicitors firms have been warned that they risk investigation, prosecution and exposure to business insurance claims because of their inadequate response to changes in professional indemnity cover requirements.
The stark message came from law firm Leigh Day following the publication of its research into regulatory compliance and insurance cover. The research found that fewer than five in ten firms have Management Liability Insurance (MLI) cover in place.
Leigh Day knows better than most of its peers the value of having a full armoury of business insurance cover in place. It recently fought off a Solicitors Regulation Authority (SRA) investigation into alleged breaches of professional conduct rules, with the Solicitors Disciplinary Tribunal (SDT) finding in its favour.
“While professional indemnity insurance (PII) used to cover these sorts of costs, the rules changed in 2010 and that is no longer the case,” said a spokesperson with the firm. “This research suggests that, despite the passage of time, this fact is something that seems to be lost on much of the profession.”
The firm said that the SRA’s new Standards and Regulations are likely to expose firms to more claims by lowering the standard of proof required at just the time that they will be made vulnerable by changes regarding professional indemnity cover.
“It seems something of a perfect storm for firms and solicitors at the moment,” said the firm.
Professional indemnity insurance with Tredstone
If you are a solicitor, architect, accountant, healthcare professional, financial advisor or other similar professional, you are legally required to have adequate professional indemnity insurance in place.
In fact, even if it is not a legal requirement of your profession, it is likely to be essential to the long-term viability of your business as well as your peace of mind.
Whether you want to update your cover, would like to discuss your insurance needs, or are seeking to obtain insurance for a specific project, Tredstone can help you ensure that you have the cover you need. Contact us today for more information.