'Troubled times' for solicitors' Professional Indemnity renewal cycle

22/05/2008

This year's Professional Indemnity (PI) renewal cycle could represent "troubled times" for solicitors.

Risk consultancy Legal Risk makes the assertion in its May newsletter - noting that it is itself a solicitors practice and must renew its cover along with the rest of the profession.

Legal Risk recommends renewing cover early in the cycle, despite the fact that its own research indicates two-thirds of solicitors wait until within two weeks of the October 1st deadline.

The legal practice explains that by renewing PI cover early, firms should be able to ensure that their premiums are unaffected by any circumstances which subsequently emerge.

Among those most likely to face problems when renewing, Legal Risks suggests practices which have suffered mortgage fraud are to be met with the most difficulty.

Companies which have expanded rapidly without any real level of control in place are also identified as being among those which could have difficulty renewing their PI coverage in the coming months.

In its Top 100 Professional Indemnity and Risk Management Survey 2008, Legal Risk noted that the cost of PI cover is a driving factor for 11 per cent of firms which have changed broker to have done so.

The level of service received from the broker is of much more relevance to companies on average, with 54 per cent saying that is the reason for them looking to obtain their PI cover from a different source.

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.

Click here to go back to archive list