The Solicitors Regulation Authority (SRA) is urging firms to kick-start their professional indemnity insurance (PII) renewal process in good time.
Two thirds of solicitor practices have policies that are due to runs out at the end of September and some may benefit from shopping around before deciding on a policy.
Frank Maher, partner Legal Risk LLP, says: “Early renewal generally offers the benefits of much shorter proposal form and continuity of insurer. However, rates are soft at the moment, so firms might save by shopping around, particularly if the claims history means their premium is still on the high side.
“Continuity of insurer reduces the risk of fallout if there is an issue over non-disclosure, but it does not eliminate it, and firms will still need to have regard to their duty of fair presentation under the Insurance Act 2015, having regard, under the provisions of section 4, to what the firms know or ought to know, taking account of the knowledge of senior management and the person responsible for arranging insurance.”
Any firms failing to renew their policies by 30 September enter the Extended Policy Period (EPP) and can use the 90-day-EPP stay period to secure a new policy.
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