With only a few days to go before the 1st October, read our advice on what firms who are still struggling to obtain a quotation for Indemnity insurance can do to find an Insurer and how you should proceed within the SRA rules.
Firstly, if you have not already done so, please read the SRA notes on the subject here www.sra.org.uk/indemnity/ Firms without a valid quotation on 1st October must inform the SRA immediately.
In short terms, during the Extended Indemnity Period (EIP) of 30 days from 1st October firms continue to be insured by their existing Indemnity Insurers. Firms can continue to work normally, accepting new instructions. During the Cessation period (CP) of 60 days immediately following the EIP, firms are insured by their existing Indemnity Insurer and can continue to work on existing instructions but cannot accept any new work.
Importantly during both the EIP and CP, firms should continue too seek indemnity insurance. If firms receive a quotation and the Insurer is prepared to back date cover to the 1st October, then the Insurance policy can be taken up and firms leave the EIP or CP under agreement b the SRA. If you do find a quotation, be aware that you will be required to sign a No Claims or Material Changes declaration, you may be required to complete and sign/date a new proposal form and supply updated claims summaries.
At 26th September, some Insurers are no longer offering quotations because they have received acceptance of quotations up to their capacity. The remaining insurers are swamped with enquiries and working hard to process quotations, however in reality it will be difficult forthe insurers to quote all business before 1st October.
Our advice to firms on sourcing a Solicitors Professional Indemnity quotation is as follows:
- Consult the Law Society PII information which lists which Insurers can consider your firm here www.lawsociety.org.uk/advice/practice-notes/professional-indemnity-insurance/
- Ensure you are approaching all tied agencies and using a good independent broker to access the rest of the market.
- Apply to Chancerypii.co.uk online.
- Check your proposal forms to ensure they still reflect your practice and amend these if necessary.
- Check you have claims summary prints from your last six indemnity insurers dated within the last 90 days.
- Don’t be unrealistic about price for insurance. As capacity dwindles Insurers will try to get the best premiums they can, this means you may well end up with a higher premium than before.
- Do ask your broker what commission they earn. As prices rise so do brokers commissions, ask them for a fair deal.
Butler Evans are still accepting new enquiries regarding Solicitors Professional Indemnity, call us on 0845 4310 448 to discuss your requirements with one of our professional advisors.