The mandatory professional indemnity insurance (PII) renewal date is 1 December 2012. This date is not negotiable. All cover under the current indemnity period will expire on 30 November 2012.
Confirmation of cover
The PII regulations for the 2012/2013 renewal period have been amended to reduce the period for confirmation to the Society of PII cover from ten working days to three working days. Therefore, confirmation of cover in the designated form must be provided to the Society on or before 6 December 2012.
Guide to renewal
The guide to renewal for the 2012/2013 indemnity period is being published on the Society’s website to assist the profession with renewal. The guide includes information such as tips for renewal, important points to note, and a guide to insurers and brokers. This guide will be updated frequently with new information received by the Society, in particular with regard to what insurers will be in the market in the next indemnity period.
2012/2013 renewal resources
Renewal resources for the 2012/2013 indemnity period are available to download from the Society website at www.lawsociety.ie/PII and currently includes:
- Common proposal form,
- List of brokers,
- List of insurers, and the
- Qualified Insurers Agreement.
This area will be updated frequently as more documentation becomes available.
Disclosure of financial rating by qualified insurers
Financial ratings are obtained by insurers following assessment of their financial strength through an independent process by a rating agency. While a financial rating is an indication of the financial strength of an insurer, it does not guarantee an insurer’s financial solvency.
Qualified insurers are required to disclose their financial rating, or absence thereof, to firms when issuing quotations. This requirement was introduced in the 2011/2012 indemnity period and remains in place for the 2012/2013 indemnity period in order to:
- Allow firms to make a more fully informed decision on their choice of insurer,
- Ensure full transparency for the profession in relation to qualified insurers meeting, or not meeting, generally accepted standards of financial strength, and
- Do so in a way that will not restrict firms’ choice of insurer.
It should be noted that all qualified insurers in the market are permitted to write insurance in this jurisdiction under the supervision of the Central Bank. The Society is not responsible for policing the financial stability of any insurer. The Society does not vet, approve or regulate insurers.
Notification of claims by 30 November 2012
All claims made against solicitors’ firms and circumstances that may give rise to such a claim should be notified to the firm’s insurer as soon as possible. In particular, claims made between 1 December 2011 and 30 November 2012 (both dates inclusive) should be notified by the firm to their insurer by 30 November 2012.
The minimum terms and conditions for PII were amended in the Solicitors Acts 1954 to 2008 (Professional Indemnity Insurance) Regulations 2011 (SI no 409 of 2011) to permit firms to report claims or circumstances of which they are aware prior to expiry of cover to their insurer within three working days immediately following the end of the coverage period. Therefore, a three-working day grace period from 30 November 2012 is in place with regard to notification of claims and circumstances to your insurer.
Improvements to the renewal process
For the 2012/2013 indemnity period, insurers are required to leave quotes to firms open for a period of not less than ten working days, an increase from five working days for the 2011/2012 indemnity period.
Run-off Fund
The Run-off Fund provides run-off cover for firms ceasing practice:
- Who have renewed their PII for the current indemnity period, and
- Subject to meeting eligibility criteria, including that there is no succeeding practice in respect of the firm.
Any firm intending to cease practice after 30 November 2012 is required to renew cover for the 2012/2013 indemnity period. Further information on run-off cover can be found on the Society’s website at www.lawsociety.ie/Pages/PII/Run-off-Cover.
PII helpline
The Society continues to operate the PII Helpline to assist firms in dealing with PII queries. The PII Helpline is open Monday to Friday from 10am to 4pm and can be contacted by phoning 01 879 8790 or emailing piihelpline@lawsociety.ie.