The SRA is continuing to review the Minimum Terms and Conditions (MTC) but the results of its work are still awaited.
We continue to be instructed on policy coverage issues, including disputes with insurers, claims handling problems, successor practice liability, and drafting block notifications.
Many block notification instructions relate to investment schemes which have gone wrong. They highlight the need for firms to consider, when assessing how much cover to buy, the application of the aggregation clause in the MTC and policy wording, under which, broadly, claims which arise from the same or similar acts or omissions may be treated as one claim under the policy.
The application of this provision goes far wider than investment schemes, however. It can cause problems in fraud cases involving rogue partners and staff, and could arise, for example, in the case of computer failure causing missed deadlines and trials. It could be a particular concern in relation to claims arising from the application of AI, and we have already advised in one case where this type of problem occurred.‹ Back to Publications