PII run-off fund: notification of closure

Firms ceasing in practice are required to provide the special purpose fund manager, Capita Commercial Insurance Services, with a written notice of their intention to cease practice by whichever is the earliest of the following:

• At least 60 days prior to the firm ceasing practice, or
• At least 60 days prior to the expiry of the firm’s coverage period.

The run-off fund provides run-off cover for firms ceasing in practice:

• Who have renewed their professional indemnity insurance for the current indemnity period, and
• Subject to meeting eligibility criteria, including that there is no succeeding practice in respect of the firm.

All firms carry the same self-insured excess into run-off that they had in their last coverage period in practice. This standard excess is separate from any additional self-insured excesses that may be applied in certain cases.

Firms obtaining run-off cover through the run-off fund will not be required to bear any additional excesses for run-off cover, provided they meet certain cessation obligations in the required timeframes. Timely notification of closure by a firm to the special purpose fund manager is one these cessation obligations.

Any notification of closure must be accompanied by the following:

• A copy of the firm’s most recent completed proposal form, and
• A copy of the firm’s most recent policy of qualifying insurance.

Additional self-insured excesses will be applied to firms commensurate with any failure to meet the cessation obligations. In the case of notification of closure, an additional self-insured excess of €15,000, in accordance with schedule 2 of the run-off rules, will be applied for failure to meet the requirements for notification of closure within the stated timeframes. Additional self-insured excesses will be applied as aggregate excesses for each indemnity period in the future (not for each and every claim).

More information on run-off cover and other cessation obligations, together with the relevant forms, regulations and documentation can be found on the Society’s website at www.lawsociety.ie/Pages/PII/Run-off-Cover/.

Firms seeking further information on the run-off fund should contact the special purpose fund manager, Capita Commercial Insurance Services, at 40 Dukes Place, London, EC3A 7NH; tel: 0044 207 397 4539, email: spf@capita.co.uk.