Law Society of Scotland appoints Lockton as Master Policy brokers
The Law Society of Scotland has appointed leading insurance brokers Lockton to administer and broker its Master Policy of Professional Indemnity Insurance from 1 January 2017, following a recent tender process.
The Master Policy is the compulsory professional indemnity insurance arrangement which covers all Scottish solicitors working in private practice. It is is one of the most important areas of consumer protection put in place and required by the Law Society.
Lorna Jack, chief executive of the Law Society of Scotland, said: “The Master Policy provides an important protection for solicitors’ clients when things go wrong. The insurance means that any valid claim against a Scottish solicitor will be paid - even if the solicitor is no longer in practice, no longer solvent or cannot be traced.
“The tender panel’s decision to change brokers was based on a range of factors. These included Lockton’s broking and placement plans; their proposed innovation especially in the area of online renewal and their commitment to the long term sustainability of the Master Policy. For all of these reasons Lockton offered the most cost effective administrative and brokering package for the profession. I am also confident Lockton will provide a high level of day to day service to our firms, including advice and assistance on insurance, something I know is important and much valued by members.
“Our current broker Marsh has provided a very good service for the Law Society and its members for almost 40 years and I want to thank them for all their advice and assistance.”
Lockton’s appointment followed a comprehensive tendering process, which commenced in June 2015 and was run by a specialist panel drawn from the Society’s insurance committee. The final decision was taken by the Law Society Council at its meeting on 29 April 2016.
The Law Society carries out a tender process to appoint Master Policy brokers every five years. Any claims against solicitors are handled by the Master Policy insurers - independently of the Society. The insurance provides cover of up to £2 million for any one claim where the solicitor is established to have been negligent.
The Master Policy started in November 1978 under brokers Sedgwick Forbes UK Limited, which later became part of the Marsh Group. Given the highly specialist nature of professional indemnity insurance, the brokers play a vital role in arranging and securing the insurance cover as well as providing administration, advice, as well as risk management training.
ENDS 3 MAY 2016
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