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Professional Indemnity Excess Layers

Professional Indemnity Insurance underpins your reputation and integrity.  It is a regulatory requirement to have sufficient cover in place for the nature of the work that you undertake, to protect you, your firm, and your clients in the unfortunate event that a large claim arises.

Why choose us?

Simpler and Safer

  • As broker for your Master Policy cover, we ensure that your Top-Up cover dovetails exactly with your existing Master Policy cover
  • In the event of a claim, you only ever need to deal with one broker - minimising the risk of a relevant claim not being notified to the necessary insurers
  • We only ever use A-rated insurers, to ensure your interests are best protected

Competitive quotes from across the market

  • We have to one of the widest range of insurer markets, including exclusive access to 3 A-rated insurers
  • Placing over £100m in solicitors' PII premium across the market, we can negotiate harder on your behalf to secure the best premiums

Simpler renewal process for you

  • We will quote your Top-Up Insurance and Master Policy at the same time, without any duplication of effort on your behalf.
  • Our online prepopulated proposal form ensures that your renewal process is as smooth and efficient as possible.

Our Service sets us apart

  • We offer independent advice on the best deal for you
  • We provide you with a dedicated Account Manager who will be your first point of contact
  • We offer claims advocacy, risk management consultancy, and ongoing advice, training and support (including our suite of on-line resources) all year round

 

Professional Indemnity Excess Layers FAQs

How do I determine the level of cover I require?

The SRA now require firms to have in place an 'appropriate' level of cover.  While there remains a regulatory minimum level of cover (£2m for a partnership, and £3m for all other entities) this may not be adequate, given the nature of the work your practice undertakes. 

In determining what an 'appropriate' level of cover is, you should consider:

  • Your current work
  • Your anticipated future work
  • Your past work.  You should consider a minimum of 6 years' work history, but we would recommend at least 10 years' history is taken into account.

Remember that your PII policy is a 'claims made' policy.  This means that the available cover is determined by the cover you have in place at the time a claim is made, not when the work was undertaken.  Many claims, particularly arising from property, wills and trusts, tax and corporate and commercial work, arise several years after the actual error was made. 

Be alert to the fact that the potential claim value can be more than the face value of the transaction.  For example, an options claim may be for the lost development value of a piece of land rather than the actual cost of the land when purchased.  Clients circumstances also change, which can have an impact on the quantum of certain types of claim. 

For more information, speak to your Lockton Account Manager.

 

A client has approached me with a high value transaction in excess of my current limit of indemnity. Can I obtain additional cover for this one transaction only?

No.  If you wanted the benefit of additional cover, this would have to be taken out for the practice as a whole, for the whole year (or remainder of the insurance year, if purchased after your PII renewal).

Please note, as cover is on a 'claims made' basis, it is not advisable to take out additional cover for one year only - and, increasingly, commercial clients will require that a certain level of cover is retained for a number of years following the transaction.  Practices should therefore consider whether the transaction value will be a one-off, and whether the fees generated justify the long-term impact on the cost of the practice's PII.

We can provide you with indicative quotations for additional cover as required.

Case study: assisting our client in the conduct of a lender claim

Our client, a top 50 UK law firm, acted for a very well known businessman in the purchase of various commercial properties.  The purchase agreements were extremely complex and required various short term loans.  Aspects of the loan agreements were backed by solicitor's undertakings.  Regrettably, the underlying client failed to put our client in funds in time for it to satisfy the undertakings it had given.  The Lenders then pursued a claim against our client.

A claim was presented to our client's PI Insurers, who tried to refuse indemnity by claiming that the undertakings were not given in the course of our client's legal practice.  We argued against the Insurers and their lawyers that this was not the case and assisted the client in properly formulating the supporting information and documents to prove that the undertakings were indeed given in the course of the client's legal practice.

The Insurers eventually conceded that two of the three undertakings were in fact given in the course of our client's practice and we ensured that our client was in receipt of the settlement funds within five days.  In addition, we negotiated that our client should maintain complete control of the recovery proceedings so that they could maintain the confidentiality of the transactions as well as contain any professional embarrassment that might have ensued.  The final part of our negotiations was to ensure that any recovery would be in favour of our client in the first instance.

To Contact Us By Phone

Our Master Policy Switchboard is available 9am - 5pm, Monday - Friday (except for public holidays, when we are closed). Master Policy Switchboard: 0131 345 5599