As professional indemnity crisis rumbles on, the SRA consults

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  • Its not just 'bad' firms that are forced to go into the ARP. A firm i know, is now having to face this after not getting any insurance, due to doing 100% conveyancing. Yet legalised conveyancers can get insurance, and at a much lower rate than premiums were last year. The law society, SRA and the banks have some serious questions to ask, as all small firms, no matter what insurance history are going to fold. This is the start to the end for solicitors.

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  • My 3 partner practice has failed to receive any quote this year because we carry out 58% conveyancing. We have never been disciplined by the SRA and have a good claims record. Over the past 6 years we have paid premiums of approx £590,000 and insurers have paid claims of £69,000. The partners could now face personal insolvency in the ARP who want us to pay £240,000 premium inc IPT and interest. This is legalised extortion and those involved in the shambles should be ashamed of themselves.

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  • I agree there doesnt seem to be any consistency. I know of firms who are in the ARP and frankly should not be trading but they are being supported despite their lack of controls and business viability. Problem is that it means more detail and even discussions with Underwriters so they understand the risks of insuring the practice - a 100% conveyancing firm may be a far better risk than a 20% conveyancing firm because they are specialists and ensure their market and have tight controls. It is fast becoming unrealistic to practise because of PII premiums

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