The Law Society has identified four groups, and the steps that solicitors could now be taking in preparation for the closure of SIF:
Group A—firms that closed on or before August 2000 are covered by SIF and will continue to receive cover after SIF is closed
Group B—firms that closed between 1 September 2000–30 September 2016 face the most difficulty and should continue to engage with the insurance market. The Law Society notes it has also actively been engaging with the market, however limited alternatives are available.
Group C—firms that have closed since 1 October 2016 will not enter the SIF as it closes to new claims after 30 September 2022, which is before the six-year mandatory run off period ends. Unless alternative arrangements are made, this group will be left without protection when run-off cover expires.
Group D—existing or new firms' principals will need to consider steps to minimise future liability and will not benefit from the SIF.
The Law Society reminds firms to continue to pay for their run-off insurance. Failure to do so has negative effects, as participating insurers provide cover, regardless of whether premium has been paid. This leads to increased professional indemnity insurance premiums for the profession as a whole.
Source: Closure of the Solicitors Indemnity Fund
This content was first published by LNB News / Lexis®Library, a LexisNexis® company, on 26 July 2021 and is published with permission. Further information can be found at: https://www.lexisnexis.co.uk/
