Master Policy

The Master Policy is the compulsory professional indemnity insurance arrangement which covers all Scottish solicitors working in private practice. The Law 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 Paul Mosson at paulmosson@lawscot.org.uk.

• Financial protection for practices, individuals solicitors and their clients in Scotland. The Society’s Master Policy is considered by man as the jewel in Scotland’s consumer protection crown.
• It underpins client trust and provides unrivalled “run-off” cover in the UK. This provides covers for closed practices in perpetuity subject to any claims limit imposed by law, for as long as the Master Policy exists. Elsewhere in the UK, run-off cover is much more limited.
• The Master Policy provides fair and transparent pricing for all practices, who benefit from the collective purchasing power.
• The broker, who handles the claims, is held to account for agreed service levels by the Society through its dedicated Insurance Committee.

One benefit of a Master policy is that it enables the broker for the Master Policy to negotiate robustly to obtain the best possible renewal terms for all practices, regardless of size. Other benefits include Stability, transparency and fairness.

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. Find out more 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.