More than 100 solicitors without new indemnity cover

More than 100 solicitors have been unable to renew their indemnity insurance.

The Solicitors Regulation Authority (SRA) confirmed today that 104 firms had applied to go into the extended indemnity period, following the 1 October renewal deadline.

The firms now have 30 days from the deadline to renew, otherwise they will then fall into the 60-day cessation period, during which they cannot take up any new business.

After this, without new cover, a firm will have to shut down.

The SRA says the figure is likely to change in the coming days as firms were given five working days from the deadline to tell the regulator of their plans.

This time last year 29 firms had applied to go into what was then the assigned risk pool, a six-month period that did not include an indemnity stage.

A spokesperson for the regulator said: “The number could go either way. The fact is the extension period allows you to get cover, which is the point of it. People can still find insurance over the weekend.

“If they do not notify us by Monday then we will take a measured view depending on the reason given.

“This is the last time this will ever happen because everyone will set their own renewal periods from now on.”