News
Latest on risk management, professional indemnity and compliance issues.
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January 16, 2024
Axis Specialty Europe v Discovery Land Company LLC and others [2024] EWCA Civ 7
The Court of Appeal has dismissed insurers’ appeal against the decision of Knowles J on the meaning of ‘condoning’ dishonesty, and on the aggregation of claims under a policy under the SRA Minimum Terms and Conditions of professional indemnity insurance.
See here.
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September 14, 2023
Professional Indemnity Insurance report commissioned by the SRA and LSB
See here.
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August 31, 2023
Royal and Sun Alliance Insurance Ltd & Ors v Tughans [2023] EWCA Civ 999 (31 August 2023)
Significant Court of Appeal decision on what constitutes ‘loss’ under a professional indemnity policy in the context of a claim for liabilities which includes the firm’s fees.
See here.
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February 15, 2023
SRA Board finalises rules for post six-year client protection
See here.
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October 17, 2022
Royal & Sun Alliance Insurance Ltd v Tughans [2022] EWHC 2589 (Comm)
Claim for indemnity by solicitors in respect of a claim for reimbursement of fees received: the judge concluded that a claim for damages against the firm in the amount of its fee to which it had acquired a contractual right under a subsisting contract constitutes a loss to the firm for which they are entitled, if the other pre-requisites to cover are established, to an indemnity under the Policy.
See here.
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September 14, 2022
SRA to establish an SRA-run indemnity scheme for future consumer protection for post six-year negligence
See here.
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August 30, 2022
Next steps on the Solicitors Indemnity Fund (SIF) and consumer protection for negligence claims: Our response to the SRA Discussion paper
See here.
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July 13, 2022
Bar Standards Board application to Legal Services Board to amend Minimum Terms and Conditions of insurance in relation to cyber and sanctions
See here.
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July 04, 2022
SRA News release: Post six-year run-off cover and the Solicitors Indemnity Fund: next steps
See here.
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May 17, 2022
Professional indemnity insurance – Council for Licensed Conveyancers (CLC) application for Legal Services Board approval to changes in compulsory insurance requirements
This contains a number of measures proposing an automatic 90-day extension of cover to allow an orderly wind-up in the event that a practice is unable to secure renewed cover, greater flexibility in relation to excesses, and administrative provisions to facilitate renewals relating to issue of claims histories and the renewal timetable.
See here.
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May 06, 2022
The Legal Services Board has published consumer research on professional indemnity insurance
See here.
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April 28, 2022
Legal Services Board discussion paper: Financial Protection Arrangements for consumers
At its board meeting on 26 April 2022, the LSB approved the project to improve the way frontline regulators approach financial protection for consumers.
See here.
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April 12, 2022
SRA – Solicitors Indemnity Fund extended to allow for further consideration
SRA News release – the SRA will seek a further 12-month extension to the Solicitors Indemnity Fund (SIF) – to September 2023 – to enable detailed consideration of key points raised in feedback. See here.
The feedback from the recent consultation has also been published, see here.
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November 23, 2021
SRA Consultation: Post six year run-off cover and the Solicitors Indemnity Fund
See here.
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October 22, 2021
SRA Consultation Response – Professional indemnity insurance (PII): affirmative cyber cover
See here.
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August 06, 2021
Baines v Dixon Coles & Gill [2021] EWCA Civ 1211
Important Court of Appeal decision on the aggregation provision in a professional indemnity insurance policy for solicitors subject to the SRA Minimum Terms and Conditions holding that multiple claims arising from acts of theft from a solicitor’s client account could not be aggregated because they did not arise out of a series of related acts or omissions. Lloyds TSB General Insurance Holdings Ltd v Lloyds Bank Group Insurance Co Ltd [2003] UKHL 48, and AIG Europe Ltd v Woodman [2017] UKSC 18 applied. The judgment of Nugee LJ also touches on, without deciding, the issue of allocation of money following multiple thefts from a mixed account and whether a shortfall should be allocated across all clients, or merely the one in respect of whom the solicitor has made the relevant entry in the firms’ accounts (suggesting the latter is less likely).
See here.
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June 16, 2021
The CLC’s Participating Insurers Agreement and Minimum Terms and Conditions: Call For Evidence
See here.
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June 15, 2021
SRA press release: extension of Solicitors Indemnity Fund cover until 30 September 2022
Note this is 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.
See here.
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April 13, 2021
SRA Consultation on proposed changes to the Minimum Terms and Conditions – Professional indemnity insurance (PII): affirmative cyber cover
See here.
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December 11, 2020
Spire Healthcare Ltd v Royal & Sun Alliance Insurance Plc [2020] EWHC 3299 (Comm) (10 December 2020)
Decision on aggregation in relation to multiple claims arising from (1) negligent and (2) unnecessary surgery by Mr Ian Paterson, who was later convicted on 17 counts, holding that there were two claims under the policy.
See here.
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October 30, 2020
Baines v Dixon Coles and Gill (A Firm) [2020] EWHC 2809 (Ch)
Decision on aggregation in relation to multiple thefts of money by a solicitor from the accounts of different clients holding that the claims did not fall to be aggregated and subject to a single limit of indemnity.
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September 02, 2020
Solicitors professional indemnity could become unsustainable
See here.
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July 22, 2020
The Road to Recovery Webinar: Watch on demand
In partnership with Howden we delivered a series of live webinars to discuss ‘The Road to Recovery’ for law firms.
In this two-part series, we provide information and guidance on how law firms can manage and adapt to the challenges of the Covid-19 pandemic, and its impact on the PII market.
The Road to Recovery: Part 1
7th July 2020Jenny Screech, Howden – An update on the Solicitors’ PII market and the impact of Covid-19
Francis Dingwall, Legal Risk LLP – Managing client and claims risks (Part 1)
Frank Maher, Legal Risk LLP – Managing financial and business risks (Part 1)
Watch part 1 here.
The Road to Recovery: Part 2
21st July 2020Jenny Screech, Howden – An update on the Solicitors’ PII market and the impact of Covid-19
Francis Dingwall, Legal Risk LLP – Managing client and claims risks (Part 2)
Frank Maher, Legal Risk LLP – Managing financial and business risks (Part 2)
Watch part 2 here.
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July 01, 2020
SRA board report on continuance of the Solicitors Indemnity Fund
See here.
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July 01, 2020
SRA report on the state of the professional indemnity insurance market
See here.
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August 13, 2019
Bank of Queensland Limited v AIG Australia Limited [2019] NSWCA 190
Aggregation: A decision of the News South Wales Court of Appeal holding that multiple claims by investors in a Ponzi scheme aggregated as one claim.
See here.
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December 19, 2019
SRA | News release: SRA decides no changes to law firm professional indemnity insurance | Solicitors Regulation Authority
See here.
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November 28, 2019
Commission Delegated Regulation amending the Insurance Distribution Directive increases the minimum limits for professional indemnity insurance in line with the European index of consumer prices from EUR 1,250,000 to EUR 1,300,380 per claim and from 1,850,000 to EUR 1,924,560 for all claims per year
See here.
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November 06, 2019
Professional indemnity insurance and in-house solicitors – Law Society guidance
See here.
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September 19, 2019
“Adequate and appropriate insurance” – SRA Guidance for Freelance solicitors (effective from 25 November 2019)
See here.
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April 17, 2019
Report to the Washington State Bar Association Board of Governors by the Mandatory Malpractice Insurance Task Force
This contains a review of the position on compulsory insurance for lawyers in the United States generally and elsewhere.
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August 13, 2019
Bank of Queensland Limited v AIG Australia Limited [2019] NSWCA 190
Aggregation: A decision of the News South Wales Court of Appeal holding that multiple claims by investors in a Ponzi scheme aggregated as one claim.
See here.
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November 23, 2018
Bank of Queensland Ltd v AIG Australia Ltd [2018] NSWSC 1689 (6 November 2018)
Decision of the Supreme Court of New South Wales on aggregation.
See here.
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November 06, 2018
Insolvency of a participating insurer – The Law Society
Insolvency of a participating insurer: Law Society’s updated practice note, see here.
We have advised several firms on successful claims to the Financial Services Compensation Scheme where eligibility issues arose.
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October 02, 2018
Law Society 2018 PII survey
See here.
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June 15, 2018
SRA consultation on Protecting the users of legal services: balancing cost and access to legal services
A copy of our response to the SRA is here.
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June 11, 2018
SRA consultation on ‘Protecting the users of legal services: balancing cost and access to legal services’ – Law Society response – The Law Society
The Law Society has published its response to the SRA Consultation on Professional Indemnity Insurance.
See here.
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June 07, 2018
Current applications – Legal Services Board
The SRA has applied to the Legal Services board for approval of changes to the regulatory arrangements regarding the Insurance Distribution Directive.
See here.
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May 10, 2018
Alpha Insurance A/S declared bankrupt
https://www.finanstilsynet.dk/en/Nyheder-og-Presse/Pressemeddelelser/2018/Alpha-insurance-080518
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April 09, 2018
SRA | Protecting the users of legal services: balancing cost and access to legal services – Consultation | Solicitors Regulation Authority
SRA consultation on Professional Indemnity and the Compensation Fund.
See here.
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February 12, 2018
Various Incapacitated Persons, Re (Appointment of Trust Corporations As Deputies) [2018] EWCOP 3 (25 January 2018)
Aggregation under the SRA Minimum Terms and Conditions was addressed in a Court of Protection decision relating to adequacy of professional indemnity cover on the appointment of solicitor-owned trust corporations as deputies. (Paragraphs 69-80)
See here.
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October 02, 2017
The Legal Services Board has approved the SRA’s application to amend provisions relating to compulsory professional indemnity run off cover when switching regulators
The Legal Services Board has approved the SRA’s application to amend provisions relating to compulsory professional indemnity run off cover when switching regulator. See here.
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August 21, 2017
The Legal Services Board has issued an extension notice in relation to the SRA’s application to amend the Minimum Terms and Conditions for Professional Indemnity Insurance
The Legal Services Board has issued an extension notice in relation to the SRA’s application to amend the Minimum Terms and Conditions for Professional Indemnity Insurance in relation to run-off insurance and switching regulators. Time is extended to 11 October 2017, which means that any changes will not be in place for firms renewing on 1 October 2017.
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August 02, 2017
Gibraltar Financial Services Commission statement on professional indemnity insurer, Elite, which is now in run-off.
See here.
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July 24, 2017
The Law Society have conducted an annual PII survey
The annual survey of solicitor’s renewal experiences to ascertain areas of difficulty and analyse market trends can be found here.
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July 18, 2017
SRA application to the Legal Services Board for approval to change the requirement for run-off cover when switching to a new regulator.
See here.
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March 28, 2017
AIG Europe Ltd v Woodman & Ors [2017] UKSC 18
Supreme Court decision on the meaning of the aggregation clause in the SRA Minimum Terms and Conditions of Insurance http://www.bailii.org/uk/cases/UKSC/2017/18.html
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February 17, 2017
Insurer’s subrogated claim against consultant in law firm for dishonesty failed
Insurer’s subrogated claim against consultant in law firm for dishonesty failed; the solicitor had previously been struck off by the Solicitors Disciplinary Tribunal for dishonesty. See Pemberton Greenish LLP v Henry [2017] EWHC 246 (QB)
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October 21, 2016
SRA publish data in preparation for PII reforms
The SRA will try again in 2017 with proposals to reform minimum terms for solicitors’ professional indemnity insurance. See article first published on www.lawgazette.co.uk here.
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October 26, 2016
Impact Funding Solutions Limited (Respondent) v AIG Europe Insurance Ltd (formerly known as Chartis Insurance (UK) Ltd) (Appellant)
The Supreme Court has allowed the appeal of AIG on the application of the trading debt exclusion in the SRA Minimum Terms and Conditions of professional indemnity insurance in Impact Funding Solutions Limited (Respondent) v AIG Europe Insurance Ltd (formerly known as Chartis Insurance (UK) Ltd) (Appellant).
Press release – https://www.supremecourt.uk/cases/docs/uksc-2015-0050-press-summary.pdf
Judgment – https://www.supremecourt.uk/cases/docs/uksc-2015-0050-judgment.pdf
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September 12, 2016
A buyers’ market: PII update
See here.
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August 25, 2016
Lemma Insurance Europe Limited: Liquidator’s seventh report dated 23 August 2016
http://lemmaeurope.com/Liquidators_seventh_progress_report_as_at_23_August_2016.pdf
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August 19, 2016
SRA urges PII early renewal | New Law Journal
http://www.newlawjournal.co.uk/content/sra-urges-pii-early-renewal
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August 19, 2016
Can we learn from the legal sector in other jurisdictions?
http://blogs.lexisnexis.co.uk/futureoflaw/2016/07/can-we-learn-from-the-legal-sector-in-other-jurisdictions/
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August 18, 2016
Council for Licensed Conveyancers’ survey of the professional indemnity insurance renewal
http://clc-uk.org/CLCSite/media/Research-Reports/20160728-PII-Renewal-2016-Review_1.pdf
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August 09, 2016
Law Gazette: Fifty law firms face race against time to stay in business
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July 29, 2016
Enterprise insurance – insolvency event – The Law Society
http://www.lawsociety.org.uk/news/stories/enterprise-insurance-ceases-trading/
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July 29, 2016
Communication from the Provisional Liquidator of Enterprise Insurance Company plc on 29th July 2016
See here.
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September 09, 2015
Response to the SRA’s Discussion paper “Protecting Clients’ Financial Interests”
See Frank Maher’s letter of response to the SRA’s Discussion Paper “Protecting Clients’ Financial Interests” here.