Q&As

What should I do if my participating insurer becomes insolvent?

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Published by a LexisNexis Practice Compliance expert
Published on: 08 May 2017
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All firms carrying on business must have qualifying professional indemnity insurance (PII) provided by a participating insurer. This Q&A sets out what you need to do if your participating professional indemnity insurer becomes insolvent.

PII covers civil claims against your firm, typically for professional negligence. Under the SRA indemnity insurance Rules, every firm must take out and maintain qualifying insurance that meets the SRA's minimum terms and conditions (MTCs). This is a continuing obligation, ie firms must at all times have qualifying PII cover in place.

Qualifying insurance must be taken out with a participating insurer.

If your participating insurer becomes insolvent you will need to act immediately to:

  1. •

    comply with your obligations under the SRA Indemnity Insurance Rules, and

  2. •

    ensure your clients are protected

What are your obligations?

If your insurer is the subject of an insolvency event, you must ensure the firm obtains qualifying insurance with another participating insurer:

  1. •

    soon as reasonably practicable, and in any event

  2. •

    within

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Jurisdiction(s):
United Kingdom
Key definition:
Professional indemnity definition
What does Professional indemnity mean?

All regulated entities must have compulsory professional indemnity insurance.

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