What do you need to know regarding Solicitors Professional Indemnity Insurance
You’ll soon discover that things don’t always go according to plan when you start your career as a solicitor. It is important to protect your reputation and your company from financial stress and damage that could result from a mistake made or an accusation being levelled against you and your company. This insurance provides protection. It is called professional indemnity insurance.
Anybody who is licensed to practice law under the Solicitors Regulation Authority must adhere to their Indemnity Insurance rules. These rules state that solicitors must always have professional indemnity insurance. It is prudent to have adequate coverage, even if you are not a member of the SRA. It’s impossible to predict when things could go wrong, so professional negligence claims can cause serious damage to your firm’s reputation.
We will be discussing in depth solicitors’ professional indemnity coverage, what it covers and what you should look for in an national insurance provider.
What is the best time to take out professional indemnity insurance from solicitors?
As soon as you start providing legal services, it is a good idea to sign up for professional indemnity. Indemnity policies typically require that you have been covered for a certain period before you can use the coverage. So, it is important to get professional indemnity insurance as soon as you start providing legal services.
What does solicitors professional indemnity coverage not cover?
To cover fines and penalties that you receive, as well as any dishonesty or fraudulent behavior allowed or commissioned by your firm, solicitors’ indemnity policy cannot be used. Indemnity insurance cannot cover injury or property damage, but other insurance policies may be available.
Indemnity insurance will not cover financial disputes, such as personal debts, trading-style liabilities of the firm, or simple fee disputes. This policy also won’t cover internal conflicts within the company.
What does solicitors professional indemnity coverage cover?
Professional indemnity insurance is designed to protect the firm and the solicitors. It covers civil liability claims by those who work in private legal practice. Indemnity insurance can help you defend professional negligence claims. These policies are often used to impress clients who are dissatisfied with the outcome of their case and sometimes by third parties.
The firm and its solicitors can be protected against claims for data protection, including accidental data loss and data breaches. A firm could be subject to a heavy fine for data breaches, up to PS17.5million or 4% of its annual turnover, depending on the severity.
What should you look for in a professional indemnity policy?
It is important to research all insurance providers and their policies before you make a decision. To avoid choosing an inexperienced insurance company, look for one that has been around for a while.
Once you have narrowed your options down to a few possible options, look at online reviews and get feedback from colleagues or other professionals in your industry. You want to choose a provider with a good reputation. This is not only to ensure that you receive the best possible support in case you have to file a claim, but also to avoid being criticized or falling into disrepute.