Professional indemnity insurance Run-Off Fund: notification of closure

Firms intending to cease practice are required to provide the special purpose fund manager with a written notice of the firm’s intention to cease practice by whichever is the earliest of the following:

• At least 60 days prior to the firm ceasing practice; or
• At least 60 days prior to the expiry of the firm’s coverage period.

The Run-Off Fund provides run-off cover for firms that have ceased practice, in circumstances where such firms:

• Have renewed their professional indemnity insurance for the current indemnity period, and
• Satisfy certain eligibility criteria, including the requirement that there is no succeeding practice in respect of the firm.

All firms entering the Run-Off Fund shall have a self-insured excess equal to the self-insured excess applicable to the firm in its last coverage period in practice. This standard self-insured excess is separate from any additional self-insured excess that may be applied to a firm’s run-off cover in certain circumstances.

Firms obtaining run-off cover through the Run-Off Fund will not be required to bear any additional self-insured excess for run-off cover, provided they meet certain cessation obligations within the required timeframes, as set out in the run-off cover rules. Providing timely notification of closure by a firm to the special purpose fund manager is one these cessation obligations.

Any notification of closure must be accompanied by the following:

• A copy of the firm’s most recent completed proposal form, and
• A copy of the firm’s most recent policy of qualifying insurance.

An additional self-insured excess will be applied to a firm’s run-off cover commensurate with any failure to meet the cessation obligations. An additional self-insured excess in the maximum amount of €15,000 will be applied for failure by a firm to notify the special purpose fund manager of its intention to cease practice within the stated timeframes. Such additional self-insured excesses are applied on an aggregate basis in respect of each indemnity period rather than on a per claim basis.

More information on run-off cover and other cessation obligations, together with the relevant forms, regulations and documentation can be found on the Society’s website at www.lawsociety.ie/Run-off.

(Firms seeking further information on the Run-Off Fund should contact the special purpose fund manager, DWF Claims (Ireland) Limited, 5 George's Dock, IFSC, Dublin 1, by phone on 01 790 9400 or by email at spf@dwfclaims.com.)

John Elliot, Registrar of Solicitors and Director of Regulation