153 firms in professional indemnity cessation period
The Solicitors Regulation Authority have revealed that a total of 153 solicitors firms have entered the second section of the new Extended Policy Period (EPP), having failed to secure new professional indemnity insurance cover.
226 firms had notified the SRA that they wished to invoke the 90-day EPP but 73 of them managed to subsequently to secure insurance.
Any firm that has still not been able to secure insurance by 29 December will have to close. Previously, firms entered the assigned risks pool (ARP), but this closed on 1 October 2013 (apart from issues involving prior-year obligations and run-off cover).
Any firm that envisages that it will need to close must be taking steps now to ensure that they are able to achieve an orderly closure of their practices. For assistance with that please contact the Lawyers Defence Group.