The Bar Council has told barristers that they should buy more professional indemnity cover on the open market will leaving them facing a hike in premiums, warned Singer & Friedlander (S&F).
The company has urged barristers to use premium finance to help them spread the cost of cover.
A study by the Bar Council’s legal services committee revealed that a large number of barristers carry out work where they face exposures exceeding the limits of their PI cover, said S&F.
The Bar Mutual Indemnity Fund (BMIF) offers maximum cover of £5m, but barristers in high-risk areas such as tax or commercial work are being urged to buy more PI cover on the open market.
”Crippling premiums mean there are firms who may be tempted to trade without sufficient protection. This is where funding can help by providing an immensely flexible and cost-effective payment solution that is ideal to help legal professionals spread the cost of cover,” it said.
Singer & Friedlander Insurance Finance sales and marketing assistant director Brian Farringdon, said: “The minimum requirements for PI cover were set more than 20 years ago and are now considered too low.
“Barristers will be shocked at the cost of increased insurance cover, but trading without it is not an option. For many firms, annual renewal will be the biggest overhead of the year.
“Using premium funding allows barristers to spread the cost of indemnity insurance through monthly instalments and thereby remove the ‘sting’ out of paying a costly annual premium.
