Risk Update – August 2015 edition
MFL Professional’s monthly update for solicitors and Manchester Law Society member publication ‘The Messenger’, concerning the ever changing landscape of solicitors Professional Indemnity. This month, Managing Director Kevin J. McParland reflects on the role of Minimum Terms Cover (MTC) over recent years.
“A few years ago I chaired a “Round the Table” discussion on behalf of Manchester Law Society (MLS), with the participants including officials and council members of MLS and very senior insurance market representatives who travelled from London to attend.
“The scope of the Minimum Terms Cover (MTC) for professional indemnity insurance was a hot topic then, as it continues to be today. One particular comment has stuck in my mind since that day. I had responded to a question along the lines of “Compared to the insurance cover required by other major professional bodies such as the ICAEW, RICS, RIBA etc, the MTC demanded by the legal profession is akin to a gold plated Rolls Royce, when a standard saloon would have been adequate”. This provoked a retort by a senior MLS Council Member, which has stuck in my mind since, to the effect that “Sorry, Kevin, you are wrong: the MTC are the equivalent of a solid gold Rolls Royce, and will cost the profession big style in the future…”
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