Q. I am a solicitor police station representative with a practising certificate. Do I need professional indemnity insurance to work in this capacity on a freelance basis?
A. Yes, but in some instances you may be insured through the indemnity cover of the firm you are doing the work for. The Solicitors Indemnity Insurance Rules 2005 allow for the concept of an 'appointed person'. This means any person who is designated as a fee-earner in accordance with any arrangements made from time to time between a firm and the Legal Services Commission pursuant to the provisions of the Access to Justice Act 1999, regardless of whether the services performed for the firm by that person are done pursuant to such arrangements or otherwise, and who is engaged by the firm under a contract of services in the course of the private practice of the firm.
Such solicitors may be covered by the firm's policy of qualifying insurance in respect of work done while directly engaged in the practice of that firm, provided that they meet the definition of an 'appointed person'. If you wish to rely on this definition, it would be advisable to have confirmation from all of the firms who employ you, that you are a designated fee-earner. Those firms should ensure that the position is accepted by their insurers.
If you do not fall into the above exemption you will be deemed to be undertaking work on your own account, and will be treated as a sole practitioner. This will require you to comply with all the rules that affect private practice, and in particular, you will be obliged to have your own professional indemnity insurance. If you are a sole practitioner, then the provisions of run-off cover will apply to you when you cease to practise, and if there is no successor practice.
Question of ethics is compiled by the Law Society's professional ethics guidance team. Send questions for publication to Austin O'Malley, the Law Society, Ipsley Court, Berrington Close, Redditch B98 0TD
No comments yet