A third of the former customers of a PI insurer declared insolvent by the Gibraltar Financial Services Commission are still without insurance, 28 days after the Commission made it’s ruling.
The Solicitors Regulation Authority says firms previously covered by the now defunct Enterprise Insurance now without cover are on notice with individual action plans to secure new policies “as soon as possible”
SRA Executive Director of Policy Crispin Passmore said: “Proper insurance not only protects consumers, it also benefits the firm and profession. We have been working closely with affected firms to make sure they secure cover and keep both existing and potential clients aware of the situation.
“The good news is that, within a short space of time, two-thirds of firms have reported securing new cover, with most others well into the process of getting something in place. We will continue to take a constructive approach with those who don’t have a new policy, but are being absolutely clear about their responsibilities and the need to move quickly.
“We are looking at each firm on an individual basis and putting them on an action plan. If we do not see evidence of progress, we will then need to take further action.”
Enterprise has been providing cover since 2011, so there are firms other than those with live policies that have open claims. All claims will now be dealt with by the liquidator with the support of the FSC.
The UK Financial Services Compensation Scheme has confirmed ti the SRA that if it establishes Enterprise cannot meet the cost of claims made against it, it will protect UK policyholders if they meet certain eligibility criteria. For example, this is for UK policyholders who are individuals or small businesses with a turnover of less than £1 million and who have professional indemnity insurance.
There will also be firms that have closed during this period, who might have run-off insurance with Enterprise. We have made all firms aware that there is a risk that the liquidator might disclaim the policies.
