When solicitors in England and Wales voted to move from a mutual insurance system to purchasing professional indemnity insurance (PII) on the open market, a portion of the old Solicitors Indemnity Fund (SIF) was retained to provide ongoing cover for closed firms, when their mandatory six year run-off cover expired.
However, after 30 September 2020, SIF will close to new claims. This means that unless alternative arrangements are made, principles of firms that closed after 31 August 2000, their estates, and perhaps individual former employees, may be held liable for losses arising from previous work.
The Law Society is currently looking into alternatives to SIF and will provide further information if a suitable solution is found. Until then, the Law Society recommends that alternative cover is sought.
PLEASE VIEW THE LAW SOCIETY'S FACTSHEET ABOUT THE CLOSURE OF SIF HERE.