Solicitors "shocked" by rising PI costs - Professional Indemnity Insurance

14/09/2009

Written by Marc Riches

The rising cost of Professional Indemnity (PI) insurance is sending shockwaves through the solicitors market, it has been suggested.

Speaking to the Lawyer, a former partner at Addleshaw Goddard points out that City-based practices are "shocked" that they are finding PI expenses increasing as they look to renew their policy ahead of the October 1st deadline.

"They've had a tough year and now they're told they have to pay more for cover," the unnamed source tells the publication.

Indeed, the ex-partner claims that legal firms - in particular smaller practices - are discovering that they are facing a rise in PI costs as they are deemed to be at greater risk of being a target of civil action.

Such reports of increasing rates come as the source also indicates that average profit per equity partner has fallen.

Meanwhile, Nick Pointon, managing director of PYV, recently claimed that smaller law firms, especially those with three partners or less, are set to "face a much tougher renewals period" this year.

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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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