2020 end to post run-off insurance cover
The Solicitors Regulation Authority (SRA) have confirmed that there will be no extension to arrangements providing insurance cover for closed firms beyond the current six-year run-off period.
Until now, practices that have shut since September 2000 without a successor practice in place have enjoyed additional professional insurance cover through the old Solicitors Indemnity Fund (SIF) for any claim made after the six-year run-off has ended. This arrangement will end in 2020.
The SRA had been asked to increase the cover for a further three years to 2023, but the Board of the SRA declined to do so stating that an extension would be contrary to existing policy aims, and SIF might not have sufficient funds to cover the additional claims.
The SRA have stated that no Handbook changes will be required to implement the decision.