Minimum level of indemnity cover
The LSB has extended the time it needs to decide on whether to approve the SRA’s proposal to reduce the minimum level of indemnity cover to £500,000.
Once again, we are in the thick of the PI renewal season and the LSB has recently extended the time it needs to decide on whether to approve the SRA’s proposal to reduce the minimum level of indemnity cover to £500,000. The latest it can make its decision is 12 October which will be after the 1 October renewal date for most firms.
Notwithstanding this uncertainty which is far from ideal, all firms need to take stock, build PII considerations into your risk management programme and ensure that your firm is able to present itself in the best possible light to insurers.
The SRA has also recently launched a “call for evidence” - details which can be found here and wishes to receive evidence that supports:
- ways in which regulation can reduce the risk of claims arising;
- the extent to which risk is shared between consumers and legal businesses;
- the impact of the PII Minimum Terms and Conditions;
- how closely cover should be aligned to the nature of the services provided; and
- the degree to which client protection arrangements are understood by consumers and are a driver of consumer behaviour.
Responses are needed by 30 September and Weightmans’ Compli team is co-ordinating the responses on behalf of MLS members. If you don’t make your views known, the SRA will make its decisions without fully understanding the experiences of practitioners at the coalface. No point is too small so please contact the Compli Helpline number on 0345 0701047 or by email to firstname.lastname@example.org and we will ensure your voice is heard.