'No PI' for troubled solicitors - Professional Indemnity Insurance for Solicitors

22/10/2008

Solicitors are being left without Professional Indemnity (PI) insurance cover during the current market turbulence, it has been claimed.

The Law Gazette reports that the number of firms entering the assigned risks pool (ARP) has increased by a factor of six.

Nick Pointon, Director of specialist PI insurance broker PYV, tells the publication that a large number of solicitors contacted the firm after the October 1st renewals deadline to enquire what to do about failing to find cover.

"We instructed them to apply to the ARP immediately," he asserts.

Figures from the Solicitors Regulation Authority (SRA) indicate that 150 solicitors were in the ARP following the deadline.

The Law Gazette notes that this leaves them open to paying a penalty rate on their PI premiums, with a 20 per cent increase for any which did not apply to the ARP ahead of October 1st.

Guidance from the SRA explains that the insurers which fund the ARP are awarded with a share of premium income in line with the proportion of funding that they supply to the scheme.

Click here for more information about Professional Indemnity Insurance for Solicitors.

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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.

(c) 2008 Adfero Ltd.

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