Partners and Members of Partnerships and LLPs can both be exposed to personal liability, particularly if the practice becomes insolvent.
While your Practice's Professional Indemnity insurance will, in the vast majority of cases, cover the cost of any claims that might arise, there could be circumstances where a a catastrophic claim could exceed your available PII cover and expose you to personal liability. In such circumstances, an asset protection policy would help to protect you and your family against the impact of insolvency of the partnership or LLP.
Pro-Tect for Partnerships
Lockton's Pro-Tect policy has been specifically designed to protect your family and dependants in the event of insolvency of your partnership following (but not necessarily exclusively caused by) a catastrophic PI claim. The policy can provide up to £10m cover to secure your home, and ensure that your family have the necessary funds to continue to support themselves.
Renaissance For LLPs
Renaissance is exclusively formulated by Lockton to address the specific needs of members of an LLP. Unlike a conventional asset protection policy, Renaissance has the additional benefit that it can actually assist in preventing an insolvency altogether. The Lockton Renaissance policy is the first product of its kind to offer two layers of protection for members of an LLP:
It can provide 'excess layer' cover above the firm's Professional Indemnity insurance where a claim would otherwise exhaust the PI cover held and thus render the LLP insolvent;
Where a claim threatens the solvency of the LLP, the members can call on funds from the policy to top-up a settlement offer. If the claimants refuse to settle in accordance with the offer, and the LLP does become insolvent as a result, then a distribution up to the policy limit is made to the members personally for their own use.
In essence the policy gives members maximum room for manoeuvre when faced with a catastrophic professional negligence claim.
Contact our Solicitors' Team for more information