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Review Your SQE 1 Practice Records

Examination Timing: 00H01M16S

Carter & Associates, a law firm, had their professional indemnity insurance expire 10 days ago and has yet to secure new coverage. The firm represents Sarah, a client in the Crown Court charged with theft. Carter & Associates has been acting for Sarah on this matter for the last six months, and the court hearing is set to take place two weeks from today. 

Can the firm represent Sarah in the court hearing?

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According to the SRA Indemnity Insurance Rules, all solicitors in private practice must maintain professional indemnity insurance (PII). If a firm's insurance expires, they enter an extended indemnity period (EIP) of 30 days, during which they can continue to practise while seeking new coverage. If they cannot obtain insurance within these 30 days, they enter a 60-day cessation period where they can only perform work related to existing instructions and cannot accept new clients. Since the court hearing is set to take place within the 30-day EIP, Carter & Associates can represent Sarah at the hearing while they continue to seek new insurance coverage. 

Key Point: During the 30-day extended indemnity period following the expiration of professional indemnity insurance, law firms can continue to practice and fulfill existing client obligations while they secure new coverage.

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