Are Solicitors a Risk Worth Taking?

Following recent contracts regarding solicitors and professional indemnity insurance, the huge risks involved are causing many insurers to ‘opt out’ of solicitor’s contracts altogether.

With recent years recording contracts between solicitors and insurers showing ‘serious losses’, a number of major firms are reevaluating whether or not they will continue working under the current economic failures. With soliciting businesses in demand for PI insurance however and insurers cancelling contracts altogether, a serious problem is arising.

The Solicitors Regulation Authority (SRA) is adamant however that PI insurance remains an essential shield for any soliciting company. ‘Solicitors' firms must obtain professional indemnity insurance in accordance with the Solicitors' Indemnity Insurance Rules.’

This being said, as the number of claims made against solicitors covered by professional indemnity insurance is drastically increasing, many insurers have already chosen to abandon selling the product in such a way, making it very hard and even unavailable to some soliciting companies.
By:Steven Bailey

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