Rather than individual firms arranging their own professional indemnity insurance, the Society appoints the brokers and instructs them on renewal terms for the Master Policy for each insurance year. Rule B7 of the Law Society Practice Rules explains our obligations for arranging the Master Policy. All solicitor firms must have professional indemnity insurance and we require confirmation that the insurance is in place in advance of practising certificate renewal in October.
The current broker is Lockton who have a dedicated website for the Master Policy covering -
- the latest Master Policy guide
- information about starting a new practice
- risk management guidance and resources
- training materials and online CPD
- notifying a claim
- a secure online portal to access your insurance documents and online proposal form
- their Master Policy team
The Master Policy is the compulsory professional indemnity insurance arrangement which covers all Scottish solicitors working in private practice. The Society arranges the Master Policy. Claims are handled by the Master Policy insurers. The insurance provides cover of up to £2 million for any one claim.
In a summary, if you make a claim against your solicitor, your solicitor is entitled to make a claim for indemnity from the Master Policy insurers. Provided it is established that you have a valid claim, the Master Policy insurers will meet the solicitor's liability to you to meet your claim.
Not every claim will involve the insurers. Whether or not the Master Policy insurers become involved, you still have to establish that your solicitor was negligent.
Depending on the circumstances, you may find that the Master Policy insurers (or solicitors instructed by them) become involved in responding to your claim. Where that happens, you will be sent a copy of the Master Policy claims handling philosophy, which is a statement of how the insurers seek to resolve claims.
Further information on the Master Policy may be obtained by emailing David Cullen at the Society.
Before considering making a claim, you should ensure that you have a case. It is not enough just to be dissatisfied with the outcome of a particular transaction, court case, etc. To establish that your solicitor was negligent and that you have a valid claim, the law requires you to be able to show:
(a) that your solicitor owed you a duty of care
(b) in what way your solicitor breached that duty of care, and
(c) the precise loss to you resulting from that breach of care
Making a claim and proving negligence can be complicated and you may need to ask a solicitor for assistance. Many claims are resolved by negotiation. Where negotiations fail, you may need to raise court proceedings, in which case the court will decide the outcome of your claim. There are time limits that apply to claims for negligence. After the expiry of those time limits, you may be unable to make a claim.
The Pursuers' Panel is a group of solicitors who have expertise in professional negligence to assist members of the public with advice about negligence claims against solicitors. Follow the link for more information about the Pursuers' Panel.
Scottish solicitors working in private practice have professional indemnity insurance cover for claims against them. This insurance means that, if you establish a valid claim for negligence against a solicitor, that claim will be paid - even if the solicitor is no longer in practice, no longer solvent or cannot be traced.