Solicitors asked to check protection following SIF closure postponement
As a result of the coronavirus pandemic, the closure of new claims to the Solicitors’ Indemnity Fund (SIF) has been postponed until 30 September 2021.
Although, the postponement gives solicitors another 12 months breathing space. Simon Davis, President of the Law Society of England and Wales has revealed that this doesn’t resolve “the underlying problem” and those in the sector should still talk to their brokers and ensure some form of insurance is in place if any claims arrive on or after 1 October 2021.
Simon Davis said:
“Firms that are currently covered by SIF, are currently in run-off or are contemplating closure, should be talking to their brokers and trying to come to an arrangement now that will provide them with the ongoing cover they require when SIF does close to new claims next year.
“We are working with the SRA, brokers and insurers to try to find practical solutions to protect former principals, their employees and their clients once SIF closes to new claims in September 2021.
“Until these efforts result in a viable replacement (and there is no guarantee that they will) we still encourage you to talk with brokers, and attempt to prepare an option that will protect your interests when SIF cover ends next year.”
To keep updated with developments surrounding the closure of the SIF, you can contact the Law Society Support Centre on 020 7242 1222, register for a My Law Society account, or email them.