Business advice from solicitors 'could result in claims'
19/12/2007
Solicitors who feel obliged to act as business advisers to their clients could ultimately face an elevated number of negligence claims, it has been warned.
Philippa Hayes, head of Professional Indemnity (PI) at commercial law firm Hammonds, tells Legal Week of the risks posed by widening the range of services offered to a client.
A recent poll by the publication found that 42 per cent of senior UK lawyers expect a major negligence claim to result in the collapse of a large firm in the next five years.
"The wider scope of duty adopted by firms, the more exposed they are to significant claims when things go wrong," Ms Hayes explains.
Her comments echo suggestions made by specialist Lloyd's of London insurance broker PYV.
Director of Claims at PYV Robert Bass recently observed: "It is imperative to agree in writing with all parties exactly what functions and services are being offered and by whom."
By doing so, he asserted, disputes can "largely be avoided", which could in turn help to keep PI premiums down.
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) 2007 Adfero Ltd.
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