The
Gazette has been contacted by practitioners concerned about the closure of the Solicitors Indemnity Fund from the end of September. The closure of the fund effectively means any solicitor facing a negligence claim outside of their six-year run-off will not be covered, unless they have taken out extra insurance.
The fund, established by the Law Society in 1987, is currently run by the Solicitors Regulation Authority. According to the most recent accounts, the SIF had net assets of £22.48m at 31 October 2020, with around 200 cases ongoing.
Andrew Stovin, a retired solicitor from St Albans, is coordinating a group of former practitioners demanding to know what will be done with the surplus and what more action can be taken to protect people or their dependants from historical claims.
Retired solicitors say they are living in fear of historical negligence claims landing on their doorsteps, as the backstop for protecting them draws to a close.
The Solicitors Indemnity Fund is set to close from September – a move delayed by a year previously – as the safety net for claims against a firm dating past the six-year run-off date is whipped away.
After a law firm closes, run-off cover must be purchased to protect solicitors and their clients if a claim arises because of negligence. The SIF has been dubbed as a ‘sleep easy’ clause as it protects retired solicitors – or potentially their estates – from historical claims.
Retired solicitors say they are living in fear of historical negligence claims landing on their doorsteps, as the backstop for protecting them draws to a close.
The Solicitors Indemnity Fund is set to close from September – a move delayed by a year previously – as the safety net for claims against a firm dating past the six-year run-off date is whipped away.
After a law firm closes, run-off cover must be purchased to protect solicitors and their clients if a claim arises because of negligence. The SIF has been dubbed as a ‘sleep easy’ clause as it protects retired solicitors – or potentially their estates – from historical claims.