The Solicitors Regulation Authority (SRA) has announced it will extend the Solicitors Indemnity Fund (SIF) for a year to allow further consultation on the future of post six-year run-off cover.
The extension is subject to an affordability test; if met, SIF will continue to provide post six-year run-off cover for claims against firms which have closed without a successor practice until September 2022.
Earlier this year, the SRA announced its intention to close the fund in September 2021 – an announcement met with widespread concern by the profession.
Post six-year run-off cover supplements the mandatory six-year run-off cover firms must maintain. SIF provided indemnity cover until 2000, when open market insur...