SRA Update
Inadequate professional service... and insurance
SRA Update Issue 11 – December 2009
Did you know that you are insured against findings of inadequate professional service (IPS)? To find out more, read on.
Insurers have varying views on when they want to be told about a possible IPS award. If you are being investigated, you should notify them without delay.
You are responsible for ensuring payment. Remember, failure to pay may be misconduct in breach of rule 1 of the Solicitors' Code of Conduct, and could lead to disciplinary findings or referral to the Solicitors Disciplinary Tribunal (SDT).
However, don't assume that insurance is irrelevant just because the likely award is within your excess. If you fail to pay, the insurer will still need to pay the client. If your insurer won't pay, it is important for you to engage with them quickly because of the problems that causes for your former client and because you will be at risk of an expensive enforcement and misconduct action in the SDT.
The SRA has powers to direct insurers to deal with some claims. So, if you need help or advice, contact our Professional Indemnity team on 01527 504487 or at professionalindemnity@sra.org.uk. Some insurers do not fully understand the system. In particular, some do not realise that they are responsible for claims within your excess if you fail to pay. So, don't accept what they say at face value.