Law Society 'calls for multiple PI renewal dates' - Professional Indemnity Insurance for solicitors

06/11/2009

Written by Marc Riches

The Law Society has voted in favour of multiple renewal dates for Professional Indemnity (PI) insurance, it has been revealed.

In a vote, 55 members of the society's council claimed that the Solicitors Regulation Authority (SRA) should replace the single renewal date currently in place with a staggered system.

Fourteen members voted against such proposals, while there were three abstentions, reports the Law Society Gazette.

A paper submitted to this week's Law Society meeting claimed that opting to introduce staggered renewals for PI would provide law firms with greater choice and flexibility when searching for cover.

In addition, it would result in lower costs and a more accurate alignment between premiums and risk.

The publication also notes that the SRA is already considering reforming the process.

However, the society acknowledges that having multiple renewal dates in place would not solve every problem currently attached to taking out PI insurance.

Writing in the Insurance Times last September, Muireann Bolger claimed that the uncertain economic outlook has seen many insurers taking a more cautious approach towards providing PI cover for solicitors, as a rising number of companies attempt to file claims against law firms to recoup money they have lost.

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