• Does the policy pay SRA costs where the regulator claims these back from the law firm under review?

 

Yes, SRA legal costs are covered under the ARAG policy.

 

• Who is covered under this policy?

 

Solicitor Insure protects the practicing certificates of individuals in Insured firms in the event that they are investigated by the SRA or engaged with a view to formal proceedings

 

• What is the limit under the policy?

 

£250k each claim and in any one Insurance year for legal costs and expenses* and costs and general expenses associated in the defence.

 

*Costs and Expenses

 

(a) All reasonable, proportionate and necessary costs chargeable by the appointed representative and agreed by us in accordance with the ARAG Standard Terms of Appointment.

 

(b) The costs incurred by opponents in civil cases if the insured person has been ordered to pay them, or the insured person pays them with our agreement.

 

• Who will be defending me/us in the event that we need protection following an SRA engagement?

 

Irwin Mitchell’s SRA defence team will provide advice and guidance on any matters where the regulator is seeking information, they will also collate formal written responses to the regulator on specific matters. If the matter goes to tribunal then individual one to one representation will be provided including counsel.

 

• I have Directors and Officers (D&O) Liability Insurances in place which I am told protects me for the risks involved, so do I need to purchase this policy in addition?

 

The D&O policy covers a range of scenarios and is very broad in it’s application. The legal defence panel law firms are also generic in their ability. Our policy and it’s legal defence process is targeted and specific to legal sector regulatory matters.

 

• We feel as a firm that we have the capability to handle these things ourselves, so is a purchase really worth it?

 

The protection aims at early mitigation and early mediation, so aims to curtail any ongoing engagement with the SRA and alleviate what can be stressful and time consuming exchanges. More importantly the fact that a firm has purchased the cover should provide a “levelling up” effect, in that it will make the regulator aware that funds are provided for a specialist team for a defensive action rather than the law firm having to pay its own costs and manage its own defence.

 

• Are there any other benefits?

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As a relatively minor cost purchase, the protection can be used as an “employee benefit” to demonstrate that law firms treat the protection and wellbeing of their teams respectfully.

There is a helpline for members to use if they receive any contact from the SRA who will provide advice and what sets to take.

 

• I already have engagement with the SRA on a given matter, can I still purchase cover?

 

Unfortunately, it isn’t possible to purchase cover if the firm have already started an engagement with the regulator, but it might be possible for us to provide access to the specialist legal defence team on a reduced cost basis.