Professional Indemnity 'deluge' on the horizon
15/01/2008
A "deluge" of Professional Indemnity (PI) claims could be on the horizon, a risk management firm warns.
Independent professional liability risk consultancy Flaxman Partners tells Insurance Daily that the residential and commercial property markets could see a proliferation of PI claims.
This may result in policy terms tightening and ultimately cause an increase in PI premiums, according to managing partner Roger Flaxman.
He explains that the concerns stem from stifled activity in the property market and a downturn in house prices.
"Lenders will seek to recover their losses and could well go after the mortgage brokers, lawyers, accountants and surveyors who originally advised on the deals," Mr Flaxman tells the publication.
He adds: "Claims can be difficult and expensive to defend - very often there is insufficient documentary evidence on the professionals' files to give them a robust defence."
The need to maintain such evidence was asserted recently by Denis Palmer, senior manager at advisory service Business Link London, who suggested that limitations of the service given to clients should be put in writing.
In this way, he argued that the magnitude of any PI claims could be reduced by ensuring the amount a client could file for would be capped.
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) 2008 Adfero Ltd.
|
|
 |
For more information contact: |
| |
Telephone: +44 (0) 20 7626 6789 |
| |
Email: |
|
|
