The majority of solicitors renewed their professional indemnity insurance (PII) without difficulty despite initial fears over the impact of Brexit, the Law Society’s PII survey of 601 law firms up to 25 partners has shown.
The average premium was 1.3% lower this year, but mean premium costs rose for firms with one to four partners. Nearly three-quarters of firms renewed with their previous insurer, up from almost two-thirds last year. Some 70% of practices chose traditional 12-month policies.
Law Society president Joe Egan said: ‘Brexit-borne uncertainty does not appear to have affected solicitors’ indemnity premiums and the average premium has actually dropped slightly.’ However, the survey raised issues concerning the Solicitors’ Indemnity Fund (SIF), which provided post six-year run-off cover—only a third of firms are aware SIF is closing in 2020. The Law Society emphasised that firms considering closing will need to factor in the additional cost of extending run-off cover.
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