A new insurer is to enter the solicitors’ professional indemnity market focusing on firms of up to five partners, the Law Society revealed today.

Vision Underwriting Limited, a wholly owned subsidiary of Liberty Mutual Insurance Europe Limited (LMIE), which is a member of US Group Liberty Mutual Group, will be trading both on a direct basis, and online under the title Legal and Professional Insurance .

The insurer has also signed a deal with the Law Society to take over Solicitors Indemnity Fund (SIF) run-off claims. These have been transferred to Vision from Legal & Professional Claims Ltd, which was previously handling the run-off cover.

SIF run-off claims are expected to take another ten years to complete, on a declining basis. SIF was the profession’s own professional indemnity provider until it was abolished in favour of an open market for insurers in 2000. The run-off work comprises claims against solicitors which relate to the time when SIF provided the PII cover.

The current LPClaims staff of eight will transfer to Vision to continue handling the run-off work.

Paul Kurgo, LMIE’s managing director, commercial business UK and Ireland, said: ‘This is an exciting opportunity for Vision as it enters a sector of the solicitors’ market currently experiencing a growing concern about the availability of a competitive market place.

‘I am also pleased that we have been able to secure a professional and highly experienced claims team that has been recognised for the quality of its management of solicitors claims, developed over many years.

‘We aim to build upon this reputation with firms knowing that their claims are in the right hands’.

Law Society chief executive Desmond Hudson said: ‘The Law Society has secured an excellent result for the profession, which secures the viability of the handling of SIF run-off claims at a reasonable cost and at a time when we are working hard to keep to a minimum the overheads on solicitors.

‘I am delighted that we have been able to reach agreement with Vision Underwriting Limited and that I am also able to welcome the arrival of another insurer for solicitors.’