Concerned lawyers 'should consult PI provider'

08/04/2008

A professional indemnity (PI) provider should be the first port of call for lawyers concerned they may have made a mistake, it has been claimed.

In its March newsletter, Legal Risk explains that verbal communication with the legal practitioner's PI provider should come before any written record is produced.

The organisation adds that email communications could also be included within this remit.

Legal Risk asserts that email and other written communications may damage the likelihood of success in any PI claim which should arise.

The company says: "Lawyers who fear they may have made a mistake which could result in a claim should be wary of committing their concerns to print before speaking to the firm's PI partner."

"Any written communication may have to be disclosed in litigation and may prejudice the firm's defence and insurance cover."

The advice contrasts with that of Denis Palmer, senior manager at advisory service Business Link London.

He recently claimed that documenting communication with clients could be important in ensuring a record exists of what has been agreed.

Robert Bass, PYV's claims director, is of the view that whilst prompt action may mitigate a difficult situation it is of paramount importance to involve insurers at the earliest stage.

He said: "PI policies require immediate notice in writing to insurers and prohibit any offers or promises being made without their consent. An insured needs to be very careful to ensure that they do not prejudice their own position by taking precipitate action. If in doubt, always contact your broker for advice."

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.

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