Regulatory Response Insurance

  • The regulatory obligations placed on COLPs, COFAs and MLROs has led to an increasing demand for insurance protection to address the risk of penalties for regulatory breach

Regulatory Response Insurance protects against fines and defence costs arising from proceedings brought by any regulatory body {eg SRA, FCA, HSE.} against either the practice or those individuals performing regulatory functions within the firm  (for example, the firm's COLP, COFA or MLRO).

The Lockton Regulatory Response policy is simple, clear and affordable - and is ideally suited to the needs of a small to medium-sized firm seeking to protect itself against the potential costs of regulatory breaches.

The policy is very cost effective, providing cover only for insurance regulatory breaches.  You benefit from a number of pre-set cover options, with upfront set-rate premiums, making it easy to take out only the cover you actually need, at a cost you can afford.

For more information contact our Solicitors' Team.

Regulatory Response Insurance FAQs

What's the difference between a traditional Management Liability policy, and Lockton's Regulatory Response cover?

Not all firms want a comprehensive management liability policy.  Management Liability (often known as Directors & Officers Insurance) policies are not bespoke products for law firms.  The Regulatory Response product is.

Following discussions with a wide range of our solicitor clients, it was clear that other than PII claims risks, the biggest concern to solicitors in management positions was the risk of regulatory breaches and the potential consequences for the firm and themselves as individuals.   Regulatory Response cover provides protection for the firm, the MLRO, and the firm's COLP and COFA, for example.

The other difference from Management Liability policies, is that, by creating a very tailored product, we have been able to really simplify the proposal form, and provide a straightforward table of premiums - so you know exactly what cover you'll get and at what premium before you even complete the one-page application.