Solicitors Indemnity Fund (SIF) continues to provide cover in limited circumstances; these include run off cover for solicitors’ practices after expiry of the six year open market cover which insurers have to provide where a firm closes without a successor practice.
SIF was due to close in 2017, but this has been extended three times because there was enough money available and to allow further review, but it will now close in September 2022 (subject to an affordability test). Assuming the test is met for one more year, it will mean that SIF will continue to provide post six- year run-off cover for claims against firms which have closed without a successor practice until September 2022.
A solution needs to be found beyond that date but will only be found with access to claims data and an injection of enthusiasm to find a solution. No commercial solution has yet been forthcoming. Frank Maher has written a short article for the Gazette, Fourteen months to find a solution, addressing some of the key issues. 15 months remain, but SIF itself, covering practically the whole of the profession’s risk, was set up in a similar timescale.
The outcome from the SRA’s consultation on the proposed cyber exclusion in the Minimum Terms and Conditions (MTC) is expected imminently.
The Council of Licensed Conveyancers (CLC) has issued a call for evidence on its MTC in the face of difficulties experienced by licensed conveyancers in obtaining cover. (Link: www.legalrisk.co.uk/News.) In the past, some solicitors have moved from SRA regulation to the CLC but this has now become nearly impossible.
We continue to see new problems emerging with buyer-funded investment schemes such as hotels and buy to let. We are advising many firms on dealing with the insurance fallout.‹ Back to Publications