Plans to close the Solicitors Indemnity Fund (SIF) have been pushed back by one year until 30 September 2021.
In June 2020, the Solicitors Regulation Authority (SRA) agreed to extend the use of the SIF for post six-year run off cover for another 12 months.
The decision follows lobbying from the Law Society. We urged the SRA to move the date in light of the difficulties faced by smaller firms to secure insurance during the coronavirus pandemic.
Earlier this year, it was announced that the SIF would close to new claims from 30 September 2020, with the effect that firms that closed after 31 August 2000 would be left unprotected.
We’ve published advice for solicitors on how to prepare for the closure of the SIF.
Simon Davis, president of the Law Society said: “While we welcome the one-year delay, it does not solve the problem and our previous advice remains valid; firms that are currently covered by SIF, in run-off or contemplating closure, should be talking to their brokers and trying to come to an arrangement that will provide them with the ongoing cover they require when SIF does close to new claims next year.”