In England and Wales, you can only take out professional liability insurance for lawyers of an insurer that has signed the SRA Qualification Insurance Agreement. There are about twenty qualified insurers that have signed up for lawyers` professional liability insurance, but there is some emigration each year, with some insurers disengaging and a few new entrants. More recently, none of the participating insurers in the SRA have been evaluated, but a return to a hard market (where the cost of premiums is rising while market capacity has decreased) could attract unvalued insurers. Most insurers require you to pay the full premium before confirming coverage. He saw more than his fair share of insurers go bankrupt and many law firms that were shut down by the SRA because they couldn`t get coverage. Section 37 of the Solicitors Act 1974 allows the SRA to establish compensation rules requiring lawyers or a certain class of lawyers to take out and maintain insurance with “licensed insurers”. Many insurers operate on a “first come, first-come” basis, and there is a risk that a scattergun approach to offer forms, without proper verification of the information sent, will lead to a declination and reduce your chances of obtaining insurance. Nevertheless, we assume that insurers should be prepared to reinstate offers at the request of a lawyer for an additional period of time until this limit is reached or until the time allowed before the expiry of the extension period makes it impossible. This should be done without an increase in the amount of the premium, provided that the circumstances underlying this proposal form do not change. All qualified insurers must provide a policy form that is no less comprehensive than the “minimum requirements” for liability insurance defined by the SRA.
You should ask a broker if they give you advice on which insurers are right for your business, based on a fair market analysis. Therefore, companies should be prepared to demonstrate to their professional insurers that they have assessed these additional risks and that they have a clear risk reduction plan. You should also consider the impact that a change of broker can have on your ability to access insurers. This means that there is no guarantee of financial integrity of insurers, but the SA requires insurers to be transparent about security financial assessments. Several insurers were willing to approve this principle in previous renewals. In response to the COVID-19 pandemic, the Solicitors Regulation Authority (SRA) announced earlier this year that companies that are having difficulty obtaining IP insurance due to problems due to the virus can apply to their insurers for an extension of the EPP and CP periods. A specialized PII broker can use this knowledge and experience to your advantage by presenting your business in a way that shows insurers that your business represents a “good” risk. . . .