The Master Policy: a question for the profession

The Master Policy and Guarantee Fund are rightly regarded as jewels in the crown of the Scottish solicitors’ profession – they provide robust insurance for firms and unrivalled protections for the public.

As convener of the Society’s Insurance Committee, I am particularly aware of the impact the Legal Services Bill might have on the professional indemnity cover provided by the Master Policy. Equally, I am conscious that failure to reform the marketplace could have even more damaging effects.

At present, every firm obtains minimum cover under the Master Policy. The proposals in the bill would require business with new structures – licensed legal services providers – to have at least equivalent cover to that offered by the Master Policy. The question remains, however, if that should be provided within or outwith the umbrella of the Master Policy. The Society suggests the former, but with corresponding restrictions on the activities of the new business entities. Solicitors are invited to contribute their own views to the ongoing consultation that considers the issue. It can be accessed by clicking here.

The last thing any of us should want is to lose the benefits provided by the Master Policy, and this whole aspect of reform will be closely considered by the Society.