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ABI comments on solicitors professional indemnity insurance

Commenting on the decision by the Solicitors Regulation Authority to reduce the level of professional indemnity insurance solicitors are required to have, James Dalton, the ABI’s Head of Liability Insurance said:

“Reducing the minimum level of PII cover for solicitors does not change the risk profile of the firm and only increases the risks to consumers if things go wrong. Consumers will end up paying the price because the SRA thinks solicitors should save money rather than protect consumers. The SRA is misguided in thinking that lowering the limit will lead to a meaningful reduction in premiums for small firms.

“The SRA has not made a final decision on whether consumers who are failed by a lower PII limit will be able to make a claim from the compensation fund. If they can, this will result in an increased levy on those firms who make prudent and sensible arrangements for their own PII cover.

“The Legal Services Board needs to ask itself whether the SRA’s proposals are a good outcome either for the legal profession or, more importantly, the profession’s customers.”

Last updated 01/07/2016