Following a public consultation and having subsequently sought approval from the Legal Services Board, the BSB is amending its Minimum Terms of Cover (MTCs) for Professional Indemnity Insurance (PII) for Barristers and BSB entities. The amendments are clarifications rather than substantive changes.
These amendments clarify that insurance policies must cover losses incurred by clients and others, if a barrister or entity is subject to a cyber-attack. Insurance for costs to the barrister or entity resulting from the cyber incident (such as repairing computer systems) is not mandated by the MTCs, but the BSB will keep under review whether it should be required in the future. In the meantime, barristers and entities should consider whether they need additional insurance to mitigate those risks.
The amendments also clarify that insurers may exclude liability that would put the insurer in breach of any obligations under sanctions legislation.
The BSB’s Director of Strategy and Policy, Ewen Macleod stated:
“The primary purpose in setting out minimum terms of cover is to ensure that barristers and BSB entities have adequate insurance to cover consumer losses, should a problem arise in relation to their practice. An absence of clarity about what is required could lead to insurers seeking to avoid liability. The amendments being made provide that clarity. Barristers and entities may wish to seek additional insurance to cover their own losses in the event of a cyber-attack.”
Notes to editors
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