Obligation to effect insurance

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You are reading current version in effect from 25 November 2019

Guidance

Guidance

Professional indemnity

The Solicitors Regulation Authority (SRA) regulates solicitors in England and Wales. Browse the Code of Conduct, Solicitors' Accounts Rules and CPD requirements, or apply for permission to practise. Professional indemnity

Glossary terms

authorised body

means:

  1. a body that has been authorised by the SRA to practise as a licensed body or a recognised body; or
  2. a sole practitioner's practice that has been authorised by the SRA as a recognised sole practice
practice

means the whole or such part of the private legal practice of an authorised body as is carried on from one or more offices in England and Wales

indemnity period

means in the SRA Indemnity Insurance Rules and the MTC, the period of one year starting on 1 September 2000, 2001 or 2002, the period of 13 calendar months starting on 1 September 2003, or the period of one year starting on 1 October in any subsequent calendar year

qualifying insurance

means a policy that provides professional indemnity insurance cover in accordance with the MTC but only to the extent required by the MTC

participating insurer

means an authorised insurer which has entered into a participating insurer's agreement with the SRA which remains in force for the purposes of underwriting new business at the date on which the relevant contract of qualifying insurance is made

policy

means:

  1. for the purposes of the SRA Financial Services (Conduct of Business) Rules 2001 the meaning given in the FCA Handbook; and
  2. for the purposes of the SRA Indemnity Insurance Rules and the MTC a contract of professional indemnity insurance made between one or more persons, each of which is a participating insurer, and an authorised body
policy period

means the period of insurance in respect of which risks may attach under a policy, but excluding the extended policy period and the cessation period

extended policy period

means the period commencing at the end of the policy period and ending on the date which is the earlier to occur of:

  1. the date, if any, on which the firm obtains a policy of qualifying insurance incepting on and with effect from the day immediately following the expiration of the policy period;
  2. the date which is 30 days after the end of the policy period; or
  3. the date on which the insured firm's practice ceases

 

cessation period

means the period commencing on the expiry of the extended policy period where, during the extended policy period the relevant authorised body has not ceased practice or obtained a policy of qualifying insurance incepting with effect on and from the day immediately following expiration of the policy period, and ending on the date which is the earlier to occur of:

  1. the date, if any, on which the authorised body obtains a policy of qualifying insurance incepting with effect on and from the day immediately following expiration of the policy period;
  2. the date which is 90 days after the commencement of the extended policy period; or
  3. the date on which the insured firm's practice ceases
private legal practice

means the provision of services in private practice as a solicitor or REL in an authorised body including, without limitation:

  1. providing such services in England, Wales or anywhere in the world in a recognised sole practice, a recognised body or a licensed body (in respect of an activity regulated by the SRA in accordance with the terms of the body's licence);
  2. the provision of such services as a secondee of the insured firm;
  3. any insured acting as a personal representative, trustee, attorney, notary, insolvency practitioner or in any other role in conjunction with a practice;
  4. the provision of such services by any employee; and
  5. the provision of such services pro bono;

but does not include:

  1. discharging the functions of any of the following offices or appointments:
    1. judicial office;
    2. Under Sheriffs;
    3. members and clerks of such tribunals, committees, panels and boards as the Council may from time to time designate but including those subject to the Tribunals and Inquiries Act 1992, the Competition Commission, Legal Services Commission Review Panels, Legal Aid Agency Review Panels and Parole Boards;
    4. Justices' Clerks; or
    5. Superintendent Registrars and Deputy Superintendent Registrars of Births, Marriages and Deaths and Registrars of Local Crematoria