24 March 2015
The Bar Standards Board (BSB) has today published the minimum
terms of the professional indemnity insurance it expects
BSB-regulated businesses ("entities") to have in place.
In
detailed information provided on its website, the BSB has,
amongst other things, confirmed that the minimum level of cover
each entity is expected to have is £500,000 per claim. However,
entities must also ensure they have adequate insurance for the type
of work they are doing in order to protect their clients in the
event of something going wrong.
With the first entity applications due to be authorised by the
regulator from early next month, all prospective BSB-regulated
entities are urged to contact their insurer as soon as possible so
as to start the process of obtaining the appropriate cover.
The BSB has been accepting applications from those wishing to set
up BSB-regulated entities since January. These will be businesses
owned and managed by lawyers and which concentrate on activities
such as representing clients in court proceedings, appearing as an
advocate, and giving specialist advice.
Director of Supervision for the BSB, Oliver Hanmer, said: "With
over 75 expressions of interest and 16 completed applications to
date we are well and truly geared up to start regulating entities
from next month. We expect that providing confirmation about the
necessary insurance arrangements will encourage further interest.
If anyone wants to find out more, I urge them to get in touch as
soon as possible."
Today's announcement also confirms that entities will have a
strictly enforced 21-day grace period from the date on which the
BSB confirms their authorisation to provide the regulator with
evidence that appropriate insurance is in place. As it could take
time to arrange the insurance the regulator is advising prospective
entities to apply simultaneously to an insurer and to the BSB for
authorisation. An entity will not be able to practise until the
insurance is in place.
Barristers who have professional indemnity insurance in place,
covering their practice as a self-employed barrister, can continue
to practise in this capacity whilst they are waiting for entity
insurance cover.
Interested in setting up a BSB-regulated entity? Please
get in touch via 0207 092 6801 or [email protected].
For more information, please
click here.
The BSB believes that becoming a regulator of entities will help
encourage new business models to emerge and flourish, which will
broaden client choice.
The BSB is not authorising Alternative Business Structures (ABSs)
- entities with non-lawyer owners and managers - but later this
year will apply separately to the Legal Services Board to widen its
regulatory scope to become a licensing authority of ABSs.
ENDS
Notes to editors
About the Bar Standards Board
Our mission is to regulate the Bar so as to promote high standards
of practice and safeguard clients and the public interest. For more
information about what we do visit: http://bit.ly/1gwui8t.
Contact: For all media enquiries call: 0207 611 1452 or
email [email protected].
