The Master Policy is the compulsory professional indemnity insurance arrangement which covers all Scottish solicitors working in private practice. The Law Society arranges the Master Policy. Claims are handled by the Master Policy insurers. It exists to provide solicitors with professional indemnity insurance cover for claims against them, and should ensure that where someone establishes a valid claim for negligence against a solicitor, that claim will be paid - even if the solicitor is no longer in practice, no longer solvent or cannot be traced.
As part of our oversight function we have the ability to monitor and make recommendations on the effectiveness (including improvement) of the Master Policy professional indemnity arrangements to the Law Society of Scotland.
In 2021 we observed the retender of the Master Policy. We drew on that observation, along with further research into indemnity arrangements in other sectors and jurisdictions, to produce a report on the current arrangements. As well as reflecting on the delivery of the tender process itself, the report comments on the wider indemnity arrangements, including their governance, and makes recommendations for how they could be enhanced.