The professional indemnity insurance market was hardening even before Covid-19 hit. Claims against all professionals were increasing and Brexit-related uncertainty is an unquantifiable risk – insurers’ least favourite kind.
The result will be greater expense for law firms. ‘Firms should brace themselves for an average increase of 30%,’ Law Society president Simon Davis says. ‘But those with bad claims histories should expect far higher increases.’
Once the mandatory renewal date for all law firms, many have moved away from 1 October – preferring policies that run for more than 12 months, aligning with the financial year. That has taken some pressure off the traditional deadline, but it remains the most significant renewal date.
‘Around 70% of our clients will renew on 1 October, which is similar to the same period last year,’ Patrick Bullen-Smith of broker Hera tells the Gazette. Ed Pickard, head of UK professions at brokers Miller Insurance, puts the figure at 60%. Lockton partner Brian Boehmer says: ‘We have renewals every month of the year but between August and November 61% of our total clients renew, with 52.8% of clients renewing on 1 October.’
