After all those years of study and exams you can finally call yourself a solicitor. As a professional you are not only going to be bound by a code of ethics when dealing with your clients but, to remain a bona fide member of the legal profession, you will need to comply with the rules and regulations laid down by the Solicitor's Regulation Authority.
For most newly qualified solicitors, the general rules of practice are known but all the 'legal' and 'corporate' factors are usually dealt with by the firm you work for. Joining a firm means you don't have to concern yourself about finding premises, insurance and a client list.
If you are however, one of those extremely brave souls that decides to strike out on their own, to hang their brass plaque proudly on the outside of an office, there's an absolute must for solicitors professional indemnity insurance.
This insurance is not a nice to have – but a requirement. Every solicitor in private practice must take out professional indemnity insurance and maintain it throughout the whole period of practice.
PII is cover for any civil claims that arise due to your work, i.e. professional negligence.
Professional indemnity insurance for solicitors, especially for those in sole practice, provides financial security in the event of a claim. The insurance will pay certain related defence costs and also cover the cost of any compensation awards made against you.
All solicitors should be aware that standard PII covers civil claims and not those brought by the Solicitors Regulation Authority or the Solicitors Disciplinary Tribunal. Some insurers will provide cover for defence of and costs for such events, but it will require additional premiums.
Your insurance must also be arranged with a qualifying insurer. Although the Solicitors Regulation Authority does not vet or regulate insurers, your chosen provider must be an 'authorised insurer' as defined by the Solicitors Act 1974.
For any newbie, insurance needs to be high on the list of things to do to set up a practice. Find out more and get quotes from Specialistrisks.
