Repossessions pose 'PI danger' to solicitors - Professional Indemnity for Solicitors

26/06/2008

The number of Professional Indemnity (PI) claims faced by solicitors is likely to rise in line with the number of repossessions in the coming months, it has been claimed.

Indemnity insurance provider Titlesolv notes that such a situation could arise as lenders sell repossessed properties at less than their original value.

Underwriting manager Mark Swallow tells Mortgage Solutions: "There can be no doubt that solicitors are likely to face increasing actions from lenders."

The publication reports that the Council of Mortgage Lenders places the likely number of repossessions due to take place by the end of the year at around 45,000.

Over the coming three years, this could rise to 75,000 - which Mortgage Solutions notes is more than the repossessions witnessed during the 1990s crisis.

Previously, Legal Week asserted that many present-day practitioners do not recall the housing crash which took place at the end of the 1980s, or the ensuing slew of PI claims which followed.

Marc Riches Director of Lloyds Insurance Broker PYV Legal commented - "now is the time for practices who deal with or have had an exposure to conveyancing to make sure that they are adequately protected by their Professional Indemnity Insurance - it could be the time to arrange a higher level of cover, which in the current market is still relatively cheap. If in doubt always check with your broker or a specialist such as ourselves".

Click here for more information about Professional Indemnity for solicitors.

Click here for more information about Professional Indemnity in general.

This news article has been produced by Adfero in collaboration with PYV and its unauthorised use is not permitted. Where this article is reproduced, PYV need to be recognised as the source of the article.

(c) 2008 Adfero Ltd.

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