Downturn 'to drive Professional Indemnity claims made against law firms' - PI for solicitors

11/03/2009

Law firms are likely to find themselves faced with an increased number of Professional Indemnity (PI) insurance claims due to the continuing effects of the financial downturn, new research shows.

A study carried out by Legal Business magazine indicates four-fifths of law firms believe the recession has increased the risks that they have faced over the last 12 months.

The research also reveals that hazards for such professionals include clients looking to lay blame, greater regulatory burden and risk of bad debt or client liquidity, while negligence claims against property lawyers rose significantly over the course of the last 12 months.

Stephen J Doggett, senior reporter at Legal Business, points out that the economic crisis "has pushed risk management up the agenda for many of the world's leading law firms", in news that could interest those on the search for PI insurance.

An article in the Lawyer earlier this year revealed that as firms lose money on property transactions, those advisers which gave guidance on such deals - and the law firms which represent them - are set to find themselves facing professional negligence claims filed by disgruntled clients.

Marc Riches, Director at specialist Solicitors PI Broker PYV Legal said: "These two articles provide yet more evidence and weight to what we have been saying for some considerable time – Risk Management for Solicitors practices is key, particularly in the economic downturn where Insurers may be examining individual firms more closely come PI renewal time. This is why we have expended much time, cost and effort in providing free risk management conferences, reduced cost online training and reduced cost risk management consultancy services with our professional partners Legal Watchman, for all of our clients."

Click here for more information about Professional Indemnity for solicitors.

Click here for more information about Professional Indemnity in general.

PYV are one of the UK's leading providers of professional indemnity insurance. This news article has been produced by Adfero in collaboration with PYV and its unauthorised use is not permitted.

(c) 2009 Adfero Ltd.

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