The Solicitors Regulation Authority (SRA) has voted to cut the minimum compulsory cover for professional indemnity insurance (PII) from £2m to £500,000 despite strong opposition from the Law Society and the City of London Law Society (CLLS) to the speed of change and lack of consultation with insurers.
In a board meeting yesterday (2 July), the regulatory body voted through proposals designed to cut costs for the profession, commenting: ‘These proposals will ensure consumers are better protected by, for the first time, requiring firms to ensure appropriate cover rather than simply relying on meeting the minimum requirements and, at the same time, ensure the very many firms undertaking primarily low value transactions are not forced to obtain higher levels of insurance than they and their clients require.’
