SRA Handbook

Exclusions from cover

Version 21 of the Handbook was published on 06/12/2018. For more information, please click 'History' Above

Rule 9: Exclusions from cover

9.1

The fund shall not afford any indemnity in respect of any loss arising out of any claim:

(a)

for death, bodily injury, physical loss or physical damage to property of any kind whatsoever (other than property in the care, custody and control of the previous practice or member thereof in connection with its, his or her private practice for which it, he or she is responsible, not being property occupied or used by it, him or her for the purposes of the previous practice);

(b)

for any alleged breach or other relief in respect of any partnership or partnership agreement between the principals in the previous practice or between any principal therein and any other person as principals in any other previous practice;

(c)

for wrongful dismissal or termination of articles of clerkship or training contract or any other alleged breach or any other relief by either party in respect of any contract of employment by the previous practice or any member thereof; and/or for wrongful termination or any other alleged breach or any other relief by either party in respect of any contract for supply to or use by the previous practice or any member thereof of services and/or materials and/or equipment and/or other goods;

(d)

for the payment of a trading debt incurred by the previous practice or any member thereof;

(e)

in respect of any undertaking given by any principal in the previous practice or by a recognised body or licensed body or on his, her or its behalf (whether in his, her or its own name or in the name of the previous practice) to any person in connection with the provision of finance, property, assistance or other advantage whatsoever to or for the benefit of such principal or any other principal or of his or her or any other principal's spouse or children or of such recognised body or licensed body or of any business, firm, company, enterprise, association or venture owned or controlled by him, her or it or any other principal or in a beneficial capacity whether alone or in concert with others, EXCEPT to the extent that the person seeking indemnity shall establish that he, she or it was unaware that the undertaking was or was likely to be connected with the provision of any such finance, property, assistance or other advantage;

(f)

in respect of any dishonest or fraudulent act or omission, but nothing in this exclusion shall prevent any particular member of the previous practice who was not concerned in such dishonesty or fraud being indemnified in accordance with these Rules in respect of any loss arising out of any claim in respect of any dishonest or fraudulent act or omission by any other such member;

(g)

in respect of any liability incurred in connection with an overseas practice. In relation to a previous practice having any overseas offices deemed by paragraph (ii) of the definition of separate practice in Rule 3.1 to form a separate practice, a liability shall be deemed to have been incurred in connection with the office where or from which the major part of the work out of which the loss arose in respect of which indemnity is sought was being done. In the event of doubt as to which (if any) office satisfies this requirement, the liability shall be deemed to have been incurred in connection with the office to which the person who accepted the initial instructions was most closely connected;

(h)

in respect of any liability incurred in connection with a previous practice in relation to which the obligation to pay contribution has been exempted under Rule 27 of the Solicitors' Indemnity Rules 2006 (or any earlier corresponding Rule) or, unless otherwise provided by the terms of the waiver, waived by the Council under Rule 19 (or under any corresponding earlier Rule);

(i)

arising out of any circumstances or occurrences which have been notified under the master policy or any certificate issued under the master policy or any other insurance existing prior to 1 September 1987;

(j)

in respect of any adjustment by way of claims loading or loss of discount which may at any future date or in respect of any future period be made by reference to any claim or claims first made or intimated during any indemnity period;

(k)

in respect of any liability incurred by any person in his, her or its capacity as a shareholder or beneficial owner of a share in a body corporate that is either a recognised body or licensed body notwithstanding the definition of principal in Rule 3.1;

(l)

in respect of any act or omission on the part of any principal whilst acting on behalf of the previous practice or any member thereof in connection with any matter affecting the business of the previous practice provided that at the time of such act or omission such principal was a principal in the previous practice;

(m)

where the previous practice or any member thereof is entitled to indemnity under any insurance except in respect of any amount greater than the amount which would have been payable under such insurance in the absence of the indemnity provided by the fund.

9.2

For the avoidance of doubt, any claim or claims by any member or former member of any previous practice against any member or former member of any such previous practice for the payment of the whole or any part of the deductible paid or due in respect of a claim already notified or made under these Rules or any previous Rules is not a loss arising within the meaning of Rule 8 and shall in no event be recoverable hereunder.

9.3

The exclusions set out in this Rule 9 shall not apply in relation to an expired run-off claim, in respect of which the provisions of Rule 8.5 shall apply.