Small law firms have been saving up to 25% on their indemnity insurance premiums following the arrival of a new insurer from Qatar, broker Lockton has said. Brian Boehmer estimated that firms had saved on average around 10%.
City solicitors have outlined their deep scepticism about plans by the Solicitors Regulation Authority to reform professional indemnity insurance rules, warning that “the solicitor brand should not be placed at risk” without very good reason.
Solicitors running two firms caught out by changes to the indemnity insurance rules and the closure of the assigned risks pool in 2012-13 have been fined by the Solicitors Disciplinary Tribunal for failing to wind-down their practices in an orderly manner.
Two partners have been cleared by the Solicitors Disciplinary Tribunal of misconduct relating to errors and omissions in their firm’s application for indemnity insurance, and unusually were allowed to maintain their anonymity throughout.
Cyber security is becoming a central issue for professional indemnity insurers, and firms will in future need to demonstrate what protections they have against cyber criminals before they are offered cover, a leading broker has predicted.
The Solicitors Regulation Authority (SRA) will focus more on individual regulation and less on firms in the year ahead, chief executive Paul Philip has said.
Almost a half of law firms using insurance brokers to secure their indemnity cover in last year’s renewal said brokers failed to reveal their commissions, a Law Society survey has revealed.
The turnover of SME law firms in London and South East rose by 4% this year, according to an annual benchmarking survey by accountants HW Fisher & Co. However, the survey warned that rising overheads would continue to put pressure on profits.
Many of the 1,863 law firms e-mailed by the Solicitors Regulation Authority last Thursday that their apparent lack of professional indemnity insurance meant they would have to move into a period of shut-down had cover after all, it emerged.
Nearly half of law firms – 47% – secured cheaper indemnity insurance this year, a survey has suggested. Half of these obtained “significant” reductions. It also indicated a move by firms from unrated to rated insurers.