Online Professional Indemnity Insurance Insurer Indemnia warned today that litigants seeking advice on any matter but in particular housing conveyancing, should check that their Solicitor has adequate Professional Indemnity Cover.
Many Law firms faced a frantic rush last week to try to obtain PI cover renewals before the deadline on October 1st.
A spokesperson said, ” We don’t know at this point in time just how many law firms are out out there without the necessary cover in place and we advise all potential customers to seek confirmation of cover before employing solicitors.”
Over the last six month’s many large UK insurance companies have withdrawn from the professional Indemnity UK market or made their rates so unattractive as to discourage renewals. Norwich Union has stopped insuring law firms of less than ten partners in an effort to remove the ‘cowboy solicitors’ from their books.
Accelerating this crisis is the credit crunch, that has seen a massive increase in the number of claims against solicitors for negligence particularly in the conveyancing area and civil claims.
“The reason for the increased number of claims is partly due to a savvy public who are quite rightly realising that the can claim under the legal expenses section of their household insurance policies for poor advice and negligent work carried out by cowboy solicitors who in some cases should not be trading”, confirmed Indemnia.
With capacity in the market for PI at its lowest ever, possibly hundreds of solicitors who did not obtain cover last week will by law have to enter the the Industry’s assigned risks pool.