Society to change Master Policy brokers
The Law Society of Scotland has appointed insurance brokers Lockton to administer and broker its Master Policy of Professional Indemnity Insurance from 1 January 2017, following a recent tender process.
Lockton, the world’s largest privately owned insurance brokerage firm, was chosen ahead of current brokers Marsh, who or whose legacy companies have run the policy for nearly 40 years. The decision, taken by the Society's Council at its April meeting last Friday, followed a comprehensive tendering process, run by a specialist panel drawn from the Society’s Insurance Committee.
The Master Policy is the compulsory professional indemnity insurance arrangement which covers all Scottish solicitors working in private practice, and is a key feature of the client protection put in place and required by the Society.
Lorna Jack, the Society's chief executive explained: “The Master Policy provides an important protection for solicitors’ clients when things go wrong. The insurance means that any valid claim against a Scottish solicitor will be paid – even if the solicitor is no longer in practice, no longer solvent or cannot be traced.
“The tender panel’s decision to change brokers was based on a range of factors. These included Lockton’s broking and placement plans; their proposed innovation especially in the area of online renewal, and their commitment to the long term sustainability of the Master Policy. For all of these reasons Lockton offered the most cost effective administrative and brokering package for the profession. I am also confident Lockton will provide a high level of day-to-day service to our firms, including advice and assistance on insurance, something I know is important and much valued by members.
“Our current broker Marsh has provided a very good service for the Law Society and its members for almost 40 years and I want to thank them for all their advice and assistance.”
Marsh will continue to have full responsibility for the administering and brokering of the Master Policy for the insurance year 2016-17, which runs from 1 November 2016. Lockton will be responsible for brokering the policy for the insurance year beginning 1 November 2017.
The Society carries out a tender process to appoint Master Policy brokers every five years.