Insurers will be unable to void a solicitor's professional indemnity (PI) policy on the grounds that the firm did not disclose relevant information because of the Law Society's rules, says a leading broker.
Item 4.1 states for the minimum terms and conditions: “The insurance must provide that the insurer is not entitled to avoid or repudiate the insurance on any grounds whatsoever, including without limitation, non-disclosure or misrepresentation, whether fraudulent or not.”
The Law Society said the clause was a necessary part of PI insurance as it was designed to protect the public.
The public would not be protected if insurers were able to void insurance for non-disclosure, it said.
