Professionals to become target of fraud claims 'due to indemnity insurance'

02/04/2009

Recent increases in instances of mortgage fraud may be set to increase Professional Indemnity (PI) insurance claim rates.

Such is the assertion of Louise Power, property dispute resolution director at Walker Morris Solicitors, who states that the recent rise in fraudulent activity has numerous similarities with that seen in the 1990s, where the discovery of such activity spiked significantly on the back of dramatic falls in property price values.

Writing in Mortgage Finance Gazette, she claims that fraudsters can prove difficult to trace once their activity have been exposed, professionals - who could or should have safeguarded the interest of lenders - may now be targeted in an attempt to recoup losses.

Ms Power adds the likes of solicitors, surveyors and valuers may be viewed as an ideal means of claiming for lost money "because of their indemnity insurance".

Meanwhile, a recent Legal Business article revealed that negligence claims against property lawyers have risen dramatically over the past year, with four-fifths of law firms stating that the economic downturn has increased the risk they have faced over the last 12 months.

Marc Riches, Director of solicitor's specialist insurance broker PYV Legal, stated: "It is true we are seeing an increased incidence in claims arising from these areas, and as such I would be surprised if insurers didn't reflect this in their rating structures for Professional Indemnity insurance at the next renewal."

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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