Negligence and PII—regulatory requirements
Negligence and PII—regulatory requirements

The following Practice Compliance guidance note provides comprehensive and up to date legal information covering:

  • Negligence and PII—regulatory requirements
  • Key terms
  • SRA Handbook
  • SRA Code of Conduct 2011
  • SRA Indemnity Insurance Rules 2013
  • Alternative business structures
  • In-house lawyers
  • Responsibility for compliance
  • Consequences of non-compliance

You must have and at all times maintain professional indemnity insurance (PII).

PII covers civil claims against your firm, most commonly for professional negligence.

Key terms

ABS alternative business structure regulated by the SRA—characterised by the involvement of non-lawyer owners and/or managers
firm solicitor practice or ABS
PII professional indemnity insurance
principal sole practitioner, partner, director, member, shareholder or beneficial owner
solicitor practice sole practice, partnership, LLP or company wholly owned and managed by lawyers
SRA Solicitors Regulation Authority

SRA Handbook

The SRA Handbook commences with ten SRA Principles. These are mandatory and apply to every aspect of practice, including the maintenance of PII. The most relevant SRA Principle is the requirement to run your business or carry out your role in the business effectively and in accordance with proper governance and sound financial and risk management principles.SRA Principles 2011

Requirements relating to negligence and PII can be found in the SRA:

  1. Code of Conduct 2011, and

  2. Indemnity Insurance Rules 2013

SRA Code of Conduct 2011

The SRA Code of Conduct 2011 describes outcomes that you must achieve in order to comply with the SRA Principles. These outcomes are mandatory and are supported by indicative behaviours. The indicative behaviours are not compulsory; th