The figure is higher than the previous year’s 37 firms but is less than accountants predicted, given the rising costs of PI and the economic impact of COVID-19.
According to accountants Hazlewoods, who specialise in the legal profession, premiums rose by about 30% as insurers reduced their share of what they saw as an unprofitable market. Insurers’ scrutiny of law firms also tightened in the last round of renewal due to concerns about the risk of professional negligence claims.
Andy Harris, partner at Hazlewoods, said: ‘Most firms have seen much better than expected cashflow over the last 12 months. This is thanks to the deferral of tax and VAT payments last year and the availability of cheap borrowings through the Bounce Back and CBILS loan schemes, which have allowed them to pay their PI premiums.’
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