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Small firms suffer as legal insurers refuse to underwrite in current climate

Small firms suffer as legal insurers refuse to underwrite in current climate Surely it is not quite accurate to say that reports of the SRA receiving hundreds of queries about the ARP have been exaggerated when the article reports there have been 261 enquiries. In addition to the 155 applications (approximately a tenfold increase on last year's number of firms in the ARP), there will be many firms who are hoping they will obtain backdated insurance and who by definition are currently 'in default' and liable to pay the ARP an increased premium - a gamble which may backfire. There will also be others in denial who have done nothing yet. Some firms faced tenfold increases in insurance costs this time. We know of one very small firm which saw its excess increase from £5,000 to £50,000 per claim (x3). Many firms were not told that they were not being offered renewal terms until a couple of days before the deadline, even though they had applied in good time. There are yet further problems emerging too but beyond the scope of this comment box!

8-Oct-2008

3:49 pm