Professional indemnity insurance: Frank Maher issues a call to action
This is the third of three articles on professional indemnity insurance (PII). We look at the SRA’s proposals for reform of the compulsory cover required by the SRA minimum terms and conditions (MTC) announced earlier this month. Their discussion paper, “Protecting client’s financial interests”, proposes sweeping reform and massive reductions in the protection provided to clients—and solicitors and their staff.
The agenda for change is driven by the SRA, but is there a risk of throwing away (not even selling) the family silver?
As noted in the last article, we have the most comprehensive cover of any profession in the world (see Pt 2, NLJ, 17 July, p 21). This can come at a price. We have seen some years when firms, particularly the smaller ones and those with a significant conveyancing practice, have had difficulty obtaining cover. This was largely a product of the exposure to lender claims which followed the global financial crisis.
The result was that many firms were driven to obtain cover from unrated
