Recent changes to insurers’ arrangements for the provision of Professional Indemnity Insurance for licensed conveyancers has been welcomed by the Society of Licensed Conveyancers (SLC).
Now, from 2023, Council Licensed Conveyancing (CLC) firms must submit at least one PII application two calendar months ahead of their renewal deadline. The new changes mean that it will be a requirement for the Insurers receiving the applications to respond to solicitors no less than one month before the deadline in an attempt to minimise the risks involved for all parties when renewals are taken right up to the renewal deadline.
This change is designed to ensure the renewal process operates more smoothly than it has done in the past, thereby affording solicitor firms more time within which to make further enquiries and seek alternative insurance cover if they need to.
The CLC held a consultation on the issue earlier this year and the SLC have stated that they are pleased to see this new change which is very much in line with their response to the consultation.
Under the changes, whilst solicitor practices must ensure at least one PII application is submitted before the end of April, they also ensure that in the event that a firm is unable to secure PII cover at renewal, the firm’s current insurer is obligated to automatically provide a 90 day cover extension to allow firms to either secure new terms or make alternative arrangements which may include undertaking an acquisition or facilitating an orderly closure. It is worth noting that the current requirement for run-off cover to be integrated into every PII policy still remains in place.
The SLC have commented that they are fully supportive of the new arrangements for PII, just recently noting that whilst the 2022 renewal round was almost complete at the end of last month some firms were only just receiving renewal proposals from insurers with mere days to go, much too close to the 30th June deadline to consider a proposal effectively or negotiate variations to terms.
It is hoped that the new arrangements will facilitate a much smoother and more efficient renewal process for 2023. The measures to extend the timeframe for practices struggling to renew their PII policies are both practical and sensible, and should allow for a more organised and considered application and renewal process for conveyancing practices from next year.
Legal Ex Plus are the experts in providing professionals with tailored insurance products with a difference that suit specific organisational requirements. By drawing on our vast experience and applying our in depth knowledge of professional services we are able to design innovative insurance programmes for each of our clients, many of whom have been with us since the early years. Call us today on 0800 180 4203 for the perfect solution for you and your business.