News release

Enterprise Insurance- Update, 27 July

We have further information on Gibraltar-based Enterprise Insurance, which provides professional indemnity insurance for law firms in England and Wales.

The Gibraltar Financial Services Commission (FSC) has announced that a provisional liquidator has been appointed for Enterprise Insurance Company Plc. On Monday (25 July), the FSC said Enterprise was insolvent and the company was to stop writing any new business.

In the current insurance period, Enterprise provides cover for around 50 of the 10,400 law firms we regulate. Now that a liquidator has been appointed, these firms have 28 days to find replacement cover, running to 22 August.

Crispin Passmore, SRA Executive Director, said: “Those firms affected by this insolvency will have concerns and want clarity on what action they should take. Our rules have a built-in flexibility that allows firms to take out insurance at any point during the indemnity period.

"We would encourage other insurers to be responsive to those firms seeking replacement cover. We will continue to monitor the situation and advise those firms affected.”

Enterprise has been providing cover since 2011, so firms other than those currently covered might also have open claims. All these claims will now be dealt with by the provisional liquidator with the support of the FSC. This will also involve discussion with the UK Financial Services Compensation Scheme to protect the best interests of policy holders and their clients.

There will also be firms that might have closed and have run-off insurance with Enterprise. We will be contacting all firms affected directly to advise them on their next steps, and offering dedicated support during this process. Enterprise has said it is committed to keeping policy holders as informed as possible in these difficult circumstances.

We will be asking Enterprise to keep firms with open claims informed to explain the situation and how the liquidation process might affect the claim. We would expect firms to keep their clients up to date. Firms that might be affected might want to contact their brokers to discuss any open claims, or other relevant issues. Firms should continue to notify Enterprise or their broker of any new claims received against their existing policy until such time as replacement cover is in place, and these claims will also be managed by the liquidator.

Further information

The commission's statement is available here:

Go to the Gibraltar Financial Services Commission

A statement from the UK Financial Services Compensation Scheme is available here:

Go to the FSCS statement

Further information is available on Enterprise's website here:

Go to Enterprise's website

Our original statement can be found here:

Go to our 25 July statement

 
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