News release

Enterprise Insurance - Update, 2 August

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

  • FSCS have confirmed approach to meeting costs of claims made against Enterprise
  • We have contacted all firms covered by Enterprise for the current indemnity period
  • Law firms with a potential claim based upon current, prior or run-off policy cover that have not notified Enterprise should do so as a matter of priority

Last Monday (25 July), the Gibraltar Financial Services Commission (FSC) said Enterprise was insolvent and had previously confirmed (22 July) that the company was to stop writing any new business.

The UK Financial Services Compensation Scheme (FSCS) has confirmed that if it establishes Enterprise cannot meet the cost of claims made against it, it will protect UK policyholders if they meet certain eligibility criteria. For example, this is for UK policyholders who are individuals or small businesses with a turnover of less than £1 million and who have professional indemnity insurance.

A statement from the FSCS is available here:

Go to the FSCS statement

We are currently determining exactly how many firms are affected by this issue. In the current insurance period, Enterprise provides cover for around 50 of the 10,400 law firms we regulate. Enterprise has been providing cover since 2011, so firms other than those with live policies might have open claims.

There will also be firms that might have closed during this period and have run-off insurance with Enterprise. All claims will now be dealt with by the provisional liquidator with the support of the FSC.

On the appointment of the liquidator, firms in practice that have a current policy have 28 days to find replacement cover, running to 22 August. We have contacted all firms currently insured by Enterprise to advise them on their next steps, and will provide dedicated support during this process.

We have also written to Enterprise to make sure it keeps current and former policyholders informed of the situation, such as 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.

We would encourage all firms with a potential claim that have not yet notified Enterprise to do so.

Further information

Enterprise and the Gibraltar Financial Services Commission have updated their statements, first issued last week (25-29 July).

Go to Enterprise's statement

Go to the Gibraltar Financial Services Commission statement

Our statements can be found here:

Go to our 27 July statement 

Go to our 25 July statement

 
Print page to PDF