The Law Society has reminded the legal sector that the Solicitors Indemnity Fund (SIF) will close to new claims from 30 September 2020.
The fund, which currently provides ongoing professional indemnity insurance (PII) to closed firms from the end of their mandatory six-year run off period, will no longer cover firms which closed after 30 August 2000.
Any firm that closed after this date or firms currently still in their run-off cover, have been advised to contact their broker to enquire if policies can be extended beyond September 2020.
The closure of the SIF will place any firm to have closed after the cut off date, ‘principals, their estates and even individual employees’, at risk and potentially liable for any losses arising from past work, if they fail to obtain additional cover.
The Law Society has further advised those working in conveyancing, wills and child injury settlements to ensure their run-off cover is extended as these areas of law are at historically higher risk with claims taking place decades after the original completion of work.
The Law Society email states:
“We are looking into the potential for alternative arrangements to SIF and will provide further information if a suitable solution could be viable.
“Until then, we recommend seeking alternative cover as soon as possible.”
