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.
You know that feeling you get when you return to work after moving house? The warm embrace of ‘business as usual’ after a period of sustained frenetic activity, a little stress, mixed with the excitement that comes with achieving a good outcome for you and your family? Well, I’ve just completed the annual renewal process of professional indemnity insurance (PII) for more than 50 firms in our network, and it’s a similar feeling.
Firms that have not secured professional indemnity insurance have until tomorrow to notify the Solicitors Regulation Authority. Despite the abolition of the single indemnity renewal date last year, 1 October remained the deadline for more than 90% of law firms.
The Legal Services Consumer Panel has called into question the existing minimum indemnity cover limit of £500,000 for barristers and called for more research before the limit was extended to firms regulated by the Bar Standards Board.
The Solicitors Regulation Authority has insisted that a lower minimum limit for indemnity insurance would “attract a discount in premiums” for law firms as it sought to counter widespread criticism of its plans.
Rated insurers may be reluctant to offer law firms indemnity limits as low as the £500,000 proposed by the Solicitors Regulation Authority (SRA), a leading insurance broker has warned.
The Legal Services Consumer Panel has hit back at criticism by the Solicitors Regulation Authority (SRA) that it opposes a minimum indemnity insurance limit of £500,000 for solicitors, while supporting it for accountants.