Lawyers speed up on PI renewals
October 15th, 2010 | by Savannah Royston |Aon has reported that law firms are recognising the need to start the renewal process for their professional indemnity (PI) insurance early.
The broker had received nearly four times the number of proposals at the beginning of August than at the same time last year, as lawyers became aware of a real possibility of a lack of available cover in the lead up to the 1st October renewal date.
The trend has continued and Aon’s executive director of risk solutions, national professions team, Andrew Gough, comments: “In the lead up to the PI renewal date lawyers were concerned about the state of the insurance market, we worked with the profession … to make sure firms knew that getting proposal forms in early can have a positive effect on getting coverage and the premium offered.”
The cost of insuring the legal profession against professional negligence claims has soared in recent years because claims tend to increase during times of economic uncertainty.
In addition, legal firms focused on real estate business have been singled out for a specific loading because of fears of mortgage fraud.
Last month, the Law Society launched a new scheme to help firms struggling to secure renewal terms.
SafetyNet provides assistance to “distressed” firms, or firms seeking to avoid entering the Society’s assigned risks pool, or attempting to exit it.
The scheme, which is managed by Lloyd’s broker PYV Limited, can provide access to insurers that specialise in distressed risks.
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