THE LOW DOWN
Solicitors’ professional indemnity insurance has a chequered history. After several years of ‘benign’ conditions, the market is again hardening. While unrated insurers have disappeared, taking with them the prospect of convulsions which once threatened the stability of the market, rates are going up. Not for everyone though – can law firms really box clever to keep the cost of PII down? And if firms are doing well, must premiums rise with turnover? The answer to both questions is ‘not necessarily’. Firms are working harder to demonstrate that their risk profile is under control, and the market has not yet taken a settled view on leading negligence cases. Meanwhile, the advent of ‘freelance’ solicitors, with a level of cover yet to be properly established, adds a further layer of fresh uncertainty.
This year’s professional indemnity insurance (PII) renewal rounds follow several where ‘benign’ conditions prevailed. But, as a Gazette roundtable discussion earlier this year related, the market appears less predictable in 2019. We asked the experts for an update.
Hardening market
‘The professional indemnity market is significantly…
