Michael Young warns of the implications for firms and retired solicitors after the Solicitors Indemnity Fund closes
Since 1987, the Solicitors Indemnity Fund (SIF) has proven to be a stalwart life ring protecting solicitors from taking a personal financial hit from professional negligence claims.
The news that the SIF is due to close in September 2021 is certain to send shivers down the spines of many practitioners. For some time, this has been a safety net for retired solicitors where claims dated back the standard six-year limitation timeframe, allowing them to cruise through their retirement – without the prospect of an unexpected historic negligence claim taking a hefty chunk out of their pension fund.
After a law firm closes, run-off cover must be purchased to provide protection if a claim arises because of negligence. The SIF p...