Topic of the Month – PII follow up
As the proposed changes that arose out of the SRA’s recent consultation will now not proceed prior to the 1st of October 2014, Neil Pointon from Howden Windsor comments as follows:
”The Legal Services Board (LSB) decision not to agree the SRA’s recent proposals for change to solicitors’ Professional indemnity Insurance (PII) requirements can be seen as a victory for common sense.
”Regardless of the merits (or otherwise) of allowing a solicitors to purchase a reduced Limit of Indemnity of £500,000, with less than 6 weeks to go before the vast majority of solicitor practices purchase their cover, any other decision would have led to some unintended consequences.
”Loss of consumer protection is one such outcome and the LSB’s language does appear critical in this respect. Loss of protection for the solicitors themselves, how different insurers would choose to adopt these proposals, and whether these proposals would generate the hoped for saving in premiums, were also among the major concerns.
”Now that timing pressures have eased, hopefully the SRA can fully consult with all those opposed their plans and come up with a more workable way forward. Any firm that is due for renewal on the 1st October and has not yet started their renewal process should do so as a matter of urgency.”
To view the LSB warning notice click here:
To view the SRA’s news release statement click here.