23.05.25

A Briefing for Law firm Partners and Practice Managers

Plus updates on Solicitor Notaries and PI Renewal

If it can happen to the Legal Aid Agency… The importance of Cyber Insurance

The news that the Legal Aid Agency has been the victim of a cyber-attack is a salutary reminder to members of the legal profession of the importance of maintaining a satisfactory level of good quality Cyber Insurance. The Ministry of Justice disclosed that a significant amount of personal data had been accessed, potentially including contact details and addresses, dates of birth, NI numbers, criminal history and financial data. The case of the LAA, and more recent attacks on Marks & Spencer and the Co-op supermarket chain are just the major cases that we get to hear about; what can only be guessed at is the number of small businesses including professional practices that fall victim to a cyber attack of some form, such as a ransomware attach, a man-in-the-middle fraud, losses of personal data, or damage to IT systems.

Cyber Insurance in itself can’t pervert an attack happening, but it can go a long way to covering the costs associated with a serious hacking incident, such as rebuilding damaged systems, informing clients of the loss of their personal data, and mitigating the adverse publicity that may arise.

For help in deciding what sort of risks your business might face and what sort of cover to incept, please do contact us.

Solicitor Notaries  – a potential gap in PI insurance to guard against

A recent case involving the PI cover for a notary public who also practices as a solicitor, warrants re-telling more widely because it highlights the potential for an unscheduled gap in cover to occur.  

The individual concerned was a sole practitioner, trading under their own name rather than via a limited company, meaning that their Solicitors’ PI policy covered both the legal services and the notarial activities. In anticipation of eventual retirement, this individual transferred ownership of their legal practice to a colleague. At the same time, the practice converted to limited company status. Whilst the change of status from sole practitioner to limited company was notified to their PI insurers, thus ensuring that the legal services were covered and for the higher mandatory £3m limit, the company omitted to declare that the out-going owner of the practice would continue to practice as a notary, as well as undertaking some legal work as a lawyer. It should be remembered at this point that, for notarial PI cover to be compliant, the notary themselves must be named as the insured/policyholder, alongside – in this case – the limited company law firm.

The result was that for some six months, the notary public had no compliant PI cover in place, because they had not been added to the law firm’s PI policy as an additional named insured. Fortunately, the gap in cover was identified, and quickly closed. With the practice now being a limited company and under different ownership, a new standalone notary PI policy was incepted in that individual’s name, and with full retroactivity.

Fortunately, no claim arose against the notary during the break in cover, and the individual continues to practice as both a lawyer and a notary public. However, the event serves to highlight the importance of declaring all such structural changes to your PI broker at the very outset, so that appropriate changes can be made.

Solicitors’ PII Renewal – A discreet, specialist-led approach

The renewal of your practice’s professional indemnity insurance cover is likely to be one of your most significant and business-critical overheads. It is therefore essential that you engage with a PI broker in whom you have complete confidence to negotiate the most cost-effective insurance programme for your practice, supported by very experienced claims-handling and efficient service.  

With over two decades of advising law firms of all sizes and profiles on their PI arrangements, we are extremely proud to be still serving all of those practices we took on after the Solicitors Indemnity Fund went into run-off. Our service is personal and director-led, and based on 20 years’ experience advising law firms.

And as part of the Ardonagh group, Cox Mahon Ltd has exceptional market access to participating insurers. Whether you require a quick benchmarking exercise, a comprehensive marketing exercise, or simply an informed second opinion, Cox Mahon delivers expert advice with clarity, discretion and without unnecessary complication

With offices in both Shrewsbury and London, we are well positioned to support you.

If our approach resonates, do please get in touch.

Article provided by Andrew Kenyon, Director, Cox Mahon

About Cox Mahon

Cox Mahon Ltd is an independent insurance broker specialising in PI Insurance for Solicitors and other professions, in Trustees Liability Insurance, and in Farms, Estates & Private Client Insurance.