The Insurance Act 2015 came into force on 12 August. The act includes changes to the law on non-disclosure and misrepresentation in relation to non-consumer contracts, including professional indemnity insurance (PII). The act introduces a new duty on law firms to make ‘a fair presentation of risk’ to professional indemnity insurers. This means disclosing information about the firm that the firm knows about, ought to know about, or ought to have discovered via reasonable enquiries, and which would influence a prudent insurer in determining whether or on what terms to accept the risk. It is important that firms understand and comply with the new higher standard of disclosure to insurers.

The SRA has produced Q&As and guidance on compliance with the new standard.