The following statement was made by Director of Regulation, John Elliot:

“The Law Society of Ireland wishes to correct some of the misleading claims made in an article published in the Irish Times on 27 August 2021, ‘Law Society seeks insurers for indemnity after key player exits’. We do so as the article conflates indemnity periods, coverage periods, and confirmation of cover deadlines.

The annual indemnity period for professional indemnity insurance (PII) runs from 1 December to 30 November annually and sets out the period covered by specified minimum terms and conditions and regulations. The coverage period is a period for which the insurance held by a firm affords cover, and it must not exceed 24 months. A firm’s indemnity period and coverage period are not required to be the same, although the majority of firms choose to have the same indemnity and coverage periods.

For many years, firms have been permitted to have variable renewal dates. These firms may have a coverage period that is longer than the indemnity period, and their cover may not expire on 30 November annually. For example, a firm with a variable renewal date of 1 April can span 2 indemnity periods, but they are still required to provide re-confirmation of cover to the Law Society within 3 working days of 1 December each year to ensure that their insurer has signed up for the incoming indemnity period.

All firms, regardless of the coverage period and whether they have availed of variable renewal dates, are required to provide the Law Society with confirmation of PII cover within 3 working days of 1 December each year.

The majority of firms renew their cover in line with the indemnity period (rather than availing of a variable renewal date) as it tends to be the period where insurers have maximum capacity, and the competition between insurers may at times cause a downward pressure on premium levels.

As such, the Law Society has a mandatory “non-negotiable” date for provision of confirmation of cover to the Society (within 3 working days of 1 December) and a set indemnity period. However, the Society does not have a set coverage period and so firms are not required to renew their cover as at 1 December each year. They can avail of variable renewal dates to choose a different time of the year to renew.

For the reasons stated above, the majority of firms choose to renew in line with the indemnity period.

As the educational, representative and regulatory body of the solicitors' profession in Ireland, the Law Society provides a range of supports to ensure that our members meet their regulatory obligations and can continue to carry out their important work on behalf of their clients. The Law Society operates a PII helpline to assist firms in dealing with professional indemnity insurance queries by phone 01 879 8707 and email piihelpline@lawsociety.ie. Extensive assistance is provided to the profession on PII through the Law Society’s website (www.lawsociety.ie/PII) including an annual guide to renewal, information on insurers and brokers, and a common proposal form that is accepted by all insurers. Law Society members can also avail of a financial scheme to assist with the cost of PII.

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