Delay in launching ABC Insurance’s professional indemnity policy for 2024-2025

4 April 2024

Note: this information was posted prior to the decision of the NSW Court of Appeal on 23 April 2024, and handing down their judgment reasoning on 9 August 2024. Please click here for an update.

ABC Insurance is excited to be entering the market to offer solicitors in NSW professional indemnity insurance needed to obtain their practising certificate.

On 17 January 2024 a letter was sent informing the Law Society of NSW of ABC Insurance’s intention to distribute a professional indemnity insurance policy to provide NSW law practices with the mandatory minimum $2 million of cover, effective 1 July 2024.

This letter confirmed that ABC Insurance had legal advice that its policy complied with Part 4.4 of the Legal Profession Uniform Law. It also sought an assurance that the Law Society of NSW would treat ABC Insurance with competitive neutrality vis à vis the Law Society’s wholly owned subsidiary, Lawcover Insurance. ABC Insurance has not received any such assurance or support for the introduction of competition.

Subsequently, on 29 February 2024 the Law Society of NSW commenced proceedings in the Supreme Court of NSW against the NSW Attorney General. The declaratory relief sought by the Law Society would have the effect of maintaining Lawcover Insurance’s PII monopoly for the majority of solicitors in NSW.

On 26 March 2024 the Law Society issued a notice stating that it “will not … process practising certificate applications attached to PII policies issued by ABC Insurance” pending “judicial clarification from the NSW Court of Appeal” which is to be heard on 2 April 2024.

Pending a decision by the Court, in the interest of caution, we have decided to delay the launch of our online application for $2 million primary layer of cover. Accordingly, we have temporarily disabled the link to access our automated, straight-through application process.

Please keep me informed

If you would like us to contact you when we are able to commence processing primary PI insurance applications then please click here or email us at subscribe@abcinsurance.net.au to provide your contact details.

If you have any other comments or questions then please click here or email us at info@abcinsurance.net.au

You can also click here to express your support.

Additional information

Please click here to download and view a PDF with further information about this matter.

Thank you once again for your ongoing support.