header-logo header-logo

PI premiums predicted to rise

30 April 2009
Issue: 7367 / Categories: Legal News , Profession
printer mail-detail

Indemnity premiums escalate as firms told to expect an upturn in claims

Professional indemnity premiums are rising, amid a growing number of “potential claims” against law firms.

The Law Society last week launched a package of advice and free seminars on renewing indemnity cover in response to insurers’ pressure to raise premiums. The package includes a series of free seminars and one-to-one consultations with a broker, and a practice note.

Frank Maher, partner, Legal Risk, says the advice was helpful in that it “emphasises the need for firms to get on with it”.

“The Law Society guidance recommends that firms start thinking about insurance in May, and sending out proposal forms in June. I think that’s sound.

“It’s good in that it emphasises the need for risk management. It mentions Lexcel as a tool to help in that aim. The problem is that people sometimes see Lexcel as the start and finish, when it is really the beginning of the journey,” he says.

Solicitors have to renew their insurance on 1 October. However, many solicitors want the single renewal date to be abolished.

Maher says: “The Law Society has in the past looked at this as an issue that relates only to the cost of insurance and the need to make sure firms have got it in place.

“Cost is no longer the only issue for law firms. Last September, there was concern over AIG. What if a major insurer was to fold in the weeks leading up to the renewal date? There is a risk management issue there.

“The vast majority of firms want a flexible renewal date. We are the only profession in this country that has a fixed renewal date.”

He adds: “We are seeing a large number of potential claims in relation to conveyancing. We are not seeing the claims coming through yet but that may be because the lenders haven’t been able to sell the properties. Once we see an upturn in the property market, there may also be an upturn in claims.”

Issue: 7367 / Categories: Legal News , Profession
printer mail-details

MOVERS & SHAKERS

Birketts—trainee cohort

Birketts—trainee cohort

Firm welcomes new cohort of 29 trainee solicitors for 2025

Keoghs—four appointments

Keoghs—four appointments

Four partner hires expand legal expertise in Scotland and Northern Ireland

Brabners—Ben Lamb

Brabners—Ben Lamb

Real estate team in Yorkshire welcomes new partner

NEWS
Robert Taylor of 360 Law Services warns in this week's NLJ that adoption of artificial intelligence (AI) risks entrenching disadvantage for SME law firms, unless tools are tailored to their needs
From oligarchs to cosmetic clinics, strategic lawsuits against public participation (SLAPPs) target journalists, activists and ordinary citizens with intimidating legal tactics. Writing in NLJ this week, Sadie Whittam of Lancaster University explores the weaponisation of litigation to silence critics
Delays and dysfunction continue to mount in the county court, as revealed in a scathing Justice Committee report and under discussion this week by NLJ columnist Professor Dominic Regan of City Law School. Bulk claims—especially from private parking firms—are overwhelming the system, with 8,000 cases filed weekly
Writing in NLJ this week, Thomas Rothwell and Kavish Shah of Falcon Chambers unpack the surprise inclusion of a ban on upwards-only rent reviews in the English Devolution and Community Empowerment Bill
Charles Pigott of Mills & Reeve charts the turbulent progress of the Employment Rights Bill through the House of Lords, in this week's NLJ
back-to-top-scroll