You are here:
  1. Home
  2. Support services
  3. Advice
  4. Practice notes
  5. Insolvency of a participating insurer

Insolvency of a participating insurer

2 November 2018
A firm whose participating insurer has become insolvent needs to act immediately to put new qualifying insurance in place. This practice note acts as a guide for solicitors who find themselves in this situation.

Legal status

This practice note is the Law Society's view of good practice in this area. It is not legal advice.

Practice notes are issued by the Law Society for the use and benefit of its members. They represent the Law Society's view of good practice in a particular area. They are not intended to be the only standard of good practice that solicitors can follow. You are not required to follow them, but doing so will make it easier to account to oversight bodies for your actions.

Practice notes are not legal advice, nor do they necessarily provide a defence to complaints of misconduct or of inadequate professional service. While care has been taken to ensure that they are accurate, up to date and useful, the Law Society will not accept any legal liability in relation to them.

For queries or comments on this practice note contact the Law Society's Practice Advice Service.

Professional conduct

The following sections of the SRA Handbook are relevant to this issue:

SRA Principles

There are ten mandatory principles which apply to all those the SRA regulates and to all aspects of practice. The principles can be found in the SRA Handbook.

The principles apply to solicitors or managers of authorised bodies who are practising from an office outside the UK. They also apply if you are a lawyer-controlled body practising from an office outside the UK. The SRA intends to introduce a revised Handbook in April 2019.

Terminology

Must - A specific requirement in legislation or of a principle, rule, outcome or other mandatory provision in the SRA Handbook. You must comply, unless there are specific exemptions or defences provided for in relevant legislation or the SRA Handbook.

Should - Outside of a regulatory context, good practice for most situations in the Law Society's view. In the case of the SRA Handbook, an indicative behaviour or other non-mandatory provision (such as may be set out in notes or guidance).

These may not be the only means of complying with legislative or regulatory requirements and there may be situations where the suggested route is not the best possible route to meet the needs of your client. However, if you do not follow the suggested route, you should be able to justify to oversight bodies why the alternative approach you have taken is appropriate, either for your practice, or in the particular retainer.

May - A non-exhaustive list of options for meeting your obligations or running your practice. Which option you choose is determined by the profile of the individual practice, client or retainer. You may be required to justify why this was an appropriate option to oversight bodies.

SRA - Solicitors regulation Authority

Qualifying insurance - Professional indemnity insurance that is taken out with a participating insurer, and which meets the Minimum Terms and Conditions set out in Appendix 1 of the SRA Indemnity Insurance Rules 2013 as amended.

Participating insurer - An insurer authorised by the Financial Conduct Authority (FCA) that has entered into a Participating Insurer's Agreement with the Solicitors Regulation Authority. A list of all participating insurers is available on the SRA website.

Solicitor/you - This includes all bodies (recognised and authorised) regulated by the SRA. For the purpose of this practice note, the term 'solicitor' includes Registered European lawyers, registered foreign lawyers as well as recognised and authorised bodies, their managers and owners.

Sign In or Register

This is premium content

To access premium content login to My Law Society.

Not registered? My Law Society is free and open to all users. Register below.

Not registered?

Registration is free and will only take a couple of minutes.

If you are a member of The Law Society you can use your MySRA account details to register.

Register
Update your contact preferences

Update your details in My Law Society and tell us how you want to hear from us.

Practice Advice Service

The Practice Advice Service provides a dedicated support line for Law Society members and employees of law firms. Call us on 020 7320 5675.

> Contact the Practice Advice Service

Recommended

Guide to Good Practice 2nd edition cover image
Guide to Good Practice

Got a practice-related query? The new edition of Guide to Good Practice is great value and handy for quick reference.

Guide to Good Practice > More