Indemnity rules

Solicitors' Indemnity Rules

We have removed redundant rules from the Solicitors' Indemnity Rules 2007 (PDF 150K) or replaced them with short rules in order to retain residual powers.

There are some technical amendments to Rules 8.5 and 8.6 concerning the provision of post six year run-off cover provided through the Solicitors Indemnity Fund. This is cover for claims that are made against any firm that had ceased without successor, which are made after the end of the six year run-off cover provided by the qualifying insurer on risk at the date the firm closed.

Solicitors' Indemnity Rules 2007 (PDF 150K)

Solicitors' Indemnity Insurance Rules

Solicitors' firms must obtain professional indemnity insurance in accordance with the Solicitors' Indemnity Insurance Rules:

Previous years' Indemnity Insurance Rules

This cover must meet the minimum terms and conditions. It may be provided by:

a qualifying insurer, or
via the assigned risks pool.

Minimum terms and conditions

These express the minimum coverage firms must have in respect of their regulated business. Qualifying insurers are free to issue their own policy terms so long as they provide at least the coverage set out in the minimum terms and conditions 2008 (PDF 225K).

Previous minimum terms and conditions

As a safety net for the public and for firms, qualifying insurers have committed to the SRA that the coverage set out in the minimum terms and conditions will apply as a minimum, regardless of the wording of the policy actually issued.

Qualifying insurers

List of qualifying insurers 2008-2009 (PDF 91K)

Previous lists of qualifying insurers

Qualifying insurers agreements

Qualifying insurers agreement 2008 (PDF 1M)

Previous qualifying insurers agreements

Indemnity insurance brokers

List of indemnity insurance brokers (PDF 253K): brokers offering professional indemnity insurance through qualifying insurers. If you are an indemnity insurance broker and want to be added to this list, email us.

Assigned risks pool

The assigned risks pool (ARP) provides cover for firms which cannot get cover from qualifying insurers or cannot reasonably afford the terms available to them. This might be because the firm has

a poor claims record.
a major claim outstanding but not yet decided.
other risk factors.

The cover is underwritten by the qualifying insurers in the same proportion as their share of the premium income from compulsory cover for the indemnity period in question.

Limitations on ARP cover

Firms may apply to be insured through the ARP for a maximum of 24 months in any five-year period.
If a firm is unable to obtain cover with a qualifying insurer in the open market by the end of the 24-month period, the firm will have to cease practice.
Firms will be required to pay a high premium, will be inspected and monitored (at the firm's expense), may be required to attend courses approved by the SRA, and may be required to implement specified practice management measures.

Premiums

The premiums for entry into the ARP and for run-off cover are calculated in accordance with the formula set out in Appendix 2 to the Solicitors' Indemnity Insurance Rules, and are based on a firm's gross fees.
In certain circumstances (for example, where a firm fails to apply within the time period in the rules), a default premium 20 per cent higher than the normal premium will be payable for the whole of the indemnity period in question.

Protecting the public

In keeping with our duty to safeguard the interests of the public, the ARP will cover claims against firms which do not secure cover in accordance with the rules. The ARP manager will recover the costs of any claims from the principals of the firm concerned.

Current ARP contract

Contract of Assigned Risks Pool Insurance 2008 (PDF 224K): Assigned Risks Pool Policy for the 2008/2009 Indemnity year.

Previous ARP contracts

ARP contact details

All enquiries relating to the assigned risk pool should be directed to the SRA's appointed ARP Manager.

ARP Manager: Capita London Market Services
Address: 40 Dukes Place
London
EC3A 7NH
Telephone: 0870 402 7788
Email: ARP@capita.co.uk

Previous years' rules

Rules and guidance change annually; you can consult previous years' indemnity rules.

To link to this page, please use www.sra.org.uk/indemnity.