Solicitors will have recently received a letter from the Solicitors Indemnity Fund (SIF) giving a summary of their professional indemnity (PI) claims record.
They were given a meagre 14 days to verify the information, and it’s possible that many will have simply taken the records on trust.
Sadly, for many firms this could prove a costly mistake in terms of their professional indemnity premiums this year.
The information will now be passed to JV Co so that they can be given a PI quotation from the Managing General Agency (MGA). Unfortunately, any information which is incomplete or incorrect could lead to accusations by the MGA of material non- disclosure. Practices could find themselves paying way over the odds for PI cover because they are unjustly seen as a bad risk.
Fortunately, it’s not too late to draw attention to any inaccuracies. Practices should act now to check their records, audit their risk management procedures, and consider getting expert advice to help present their firm in the best light to new underwriters. It could end up saving a lot of time and trouble in the future.
Now there is a free market in solicitors’ PI cover they should also check any quotations from the MGA with a comparative quote from a reputable broker.
Richard Brown, Director, Nelson Hurst Professional Indemnity