'Ample PII cover' could be in doubt for small firms - Professional Indemnity Insurance for Solicitors

12/09/2008

Small legal practices could find it more difficult to secure Professional Indemnity Insurance (PII) cover in the coming months, it has been asserted.

The Law Gazette reports that a number of major providers are withdrawing cover for smaller firms or have already withdrawn from what they see as an unsustainable market.

However, an industry spokesperson tells the publication that it is likely that small practices will still be able to find cover.

There remains "ample insurance in the market for sole practitioners", according to Clive Sutton, secretary of the PII committee at the Sole Practitioners Group.

But the Law Gazette points out that Norwich Union - which covers 8.3 per cent of PII policies in the legal sector - has withdrawn its policies for firms with nine partners or fewer which conduct conveyancing work.

Following the 2007 renewal cycle, the Sole Practitioners Group forecasted that capacity available to small firms in the PII sector could drop by up to 15 per cent over the subsequent months.

Marc Riches, Director of solicitors PI specialist PYV Legal, commented: "This year looks to be one of the hardest markets for a long time and I strongly recommend that practices, of whatever size, do not delay obtaining cover any longer in the hope of securing last-minute deals - I do not believe that any practice will have that luxury this year."

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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.

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