Lawcast 167: Oliver Wharmby, Priest & Co, on Professional Indemnity Insurance for Solicitors
Professional Indemnity Insurance for solicitors is a matter of great importance – without it, solicitors cannot practice. I talk to Oliver Wharmby of Priest & Co, lloyds Insurance Brokers on the the current state of play in the insurance market which is by no means as straightforward as, perhaps, it was in previous years with Quinm not re-entering the solicitors professional indemnity insurance (PII) market this year in England & Wales.
1. Introduction – what is PI – what does it cover and why do solicitors have to have it – how much cover do big / small firms typically arrange? – any maximum on payout? – What about excess?
2. What is the scale of claims – roughly how many each year – value of claims – who are the biggest claimers / biggest risk
3. Who provides the Insurance – qualifying insurer – how many – effect of Quinn / Hiscox – how difficult is insurance to get? – what do insurers look for? – difference between major Magic Circle firm and small practice – premium differential.
4. When do solicitors need to get their Insurance organised by?
5. What if no-one will cover a firm?
6. What is the outlook for the forthcoming renewal season?
7.When is the best time to be obtaining quotes?
(Due to internet connectivity issues – there is a very short passage midway where sound quality deteriorates. It is, however, brief)
Priest and Co are Lloyds Insurance Brokers and specialists in Professional Indemnity Insurance for the legal profession. They are happy to work in a broker capacity approaching the markets they have access to, but also in an advisory role to ensure all markets have been approached. They also have access to a distressed market for those firms that have no other alternative but the assigned risk pool.
If you would like some advice or to discuss matters with Oliver Wharmby – he would be delighted to assist. You may contact him by email or through his office at Priest & Co
Tel: 0207 648 4122
The Law Society require that cover is provided through a qualifying insurer and in line with the minimum requirements. Because the Law society require cover to be so broad, there are very few insurers that are willing to provide the insurance. This creates a lack of supply for the large demand. There are roughly 12,000 law firms in the UK with one renewal date on 1st October.
Law Society Update
We have just learned that Quinn Insurance Limited has confirmed that it will not be re-entering the solicitors’ professional indemnity insurance (PII) market in England and Wales this year.
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