Insurers see an increase in demand for Solicitor Management Liability insurance

As part of the Solicitors Regulatory Authority’s recent introduction of outcome-focused regulation, all Solicitor firms who are recognised and licensed bodies must nominate a compliance officer for legal practice (COLP) and a compliance officer for finance and administration (COFA), who will start to fulfil their responsibilities in late 2012.

This has highlighted the need for Solicitors to protect themselves, their partners, and employees against the sorts of Management Liability exposures that the Directors’ and Officers’ of limited liability companies have been insuring against for many years.

Who is covered?

Partners, members, directors and employees who are nominated as COLPs or COFAs, and employees in a managerial or supervisory capacity

The partnership/firm itself should it have to reimburse a partner, member, director or employee

What is covered?

Wrongful Acts committed in the course of running the partnership/firm, such as breach of duty, breach of trust, breach of warranty of authority, neglect, error, misstatement, misleading statement, libel, slander or defamation

Investigation Costs incurred at an official examination, enquiry, investigation or other proceeding by regulators or others legally empowered to investigate the firm’s affairs. For example the Solicitors Regulation Authority, Law Society, Information Commissioner or Health & Safety Executive

Defence Costs, the legal costs to defend an insured person in the event of a management liability claim being brought against them

Who should consider buying Solicitors Management Liability insurance?

·         Sole practitioners

·         Partnerships

·         Limited Liability Partnerships

·         Legal Disciplinary Practices

·         Limited companies

·         Alternative Business Structures

For more information regarding management liability insurance for Solicitors contact Adam Lawrence on 0118 9165 484 or complete one of our enquiry forms.

Author: Tony Gibbs | December 18th, 2012

Contact the author

Tony Gibbs
Get in touch:   Reading: 0118 916 5480   London: 020 7036 8767