Insurers pick apart wording and query “sham” partnerships
Insurers picking apart solicitors’ professional indemnity (PI) insurance policies in the face of 82% of insurers in an Ntegrity survey saying claims will rise, the Law Society Gazette reports.
- 18% of insurers polled by Ntegrity expect claims will rise substantially
- 64% predict a small rise
None of the insurers polled by Ntegrity expected premiums to fall during the 2010 renewals season, with 85% forecasting premium rises. In the indemnity year 2009/10, the cost of insuring the profession was £241m – a £15m rise on 2008/09.
Frank Maher, partner at Liverpool risk management and professional indemnity firm Legal Risk, said that PI insurers are beginning to dispute terms and conditions, often trying to deny cover by establishing that a sham partnership exists.
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