Lawyers face up to 40% hike in PI renewals

Lawyers renewing their professional indemnity (PI) cover could face rate increases of up to 40%.

In addition, the Law Society Gazette reported that hundreds of lawyers are scrambling to renew their PI cover ahead of the 1 October deadline following high-profile exits from the solicitors’ PI market.

Last week, more than 1,000 customers of unrated PI insurer Berliner were informed they had to find alternative cover after the company withdrew from the market. Many of the company’s clients had transferred from Latvian insurer Balva, which was ordered to wind up in June.

The reduction in capacity has left lawyers facing higher rates.

Broker Marsh’s head of UK regulated professions John Kunzler said prices were volatile even before Beliner’s exit and that some law firms were being quoted 40% more than last year.

Firms reliant on areas such as legal aid, personal injury and conveyancing can still obtain insurance, he added, but they will face tougher questions from insurers. He said: “You have to demonstrate you’ve adapted to change: underwriters want to hear your business case.”