Solicitors Insurance

shoes34 · 13-01-2011 1:49pm #1

I work in a Solicitors practise and they are finding it hard to get insurance been quoted over €100,000. what will be the consequence if they don't get same?

Thanks.

Maximilian · 13-01-2011 2:16pm

You can't practice without PI cover. The Law Society does have what's called the Assigned Risks Pool as a safety net for firms who cannot get insurance, which allows them to continue to operate..

Here's what they had to say about it in a recent bulletin:

The assigned risks pool (ARP) is a safety net designed for firms refused cover in the market.

Even if you do decide to apply to the ARP you should continue to try to seek cover in the market as the level of cover in the market is much better and premium rates in the market are expected to be significantly lower. The following key points in relation to the ARP are emphasised:

There will be an aggregate limit for all claims of €1.5 million.
All claims by financial institutions (regardless of whether the financial institution is a client of the firm) will be excluded.
It is expected that in all cases the premium will exceed market rates by a substantial margin.
The ARP should be regarded in all cases as a place of last resort and not as an alternative to cover in the market.

shoes34 · 13-01-2011 3:14pm

thanks,

also does it depend on how many Solicitors are in a firm?

Maximilian · 13-01-2011 6:41pm

Yes, I think the number of solicitors has a bearing on the quote but as far as I can see, at the moment the primary factor is the type of work engaged in. A firm that primarily engages in conveyancing would pay a higher premium than one primarily engaged in personal injuries, say.

There is likely to be a lot, and very substantial, claims in the coming years arising out of issues discovered through NAMA due dilligence. I don't think that bodes well for insurance prices in the coming years.

And yes, it is entirely conceivable that PI levels will lead to job losses. They already have.

nuac · 13-01-2011 10:04pm

Yes PI cover is a major problem.

James Cahill Solr Castlebar has made a special study of it, and conducted a survey of premia etc last year. He may be worth contacting.

Reloc8 · 14-01-2011 3:23pm

Last time I checked entry into the Assigned Risk Pook had been suspended and this has not been lifted, i.e. there is now no 'insurer of last resort' for solicitors who either fail to get quotes or fail to get quotes which are commercially practicable - there was recently a few firms 'struck off' in those circumstances.

The ARP continues to operate in respect of firms which entered prior to the suspension.

Maximilian · 14-01-2011 6:47pm

Reloc8 wrote: »

Last time I checked entry into the Assigned Risk Pook had been suspended and this has not been lifted, i.e. there is now no 'insurer of last resort' for solicitors who either fail to get quotes or fail to get quotes which are commercially practicable - there was recently a few firms 'struck off' in those circumstances.

The ARP continues to operate in respect of firms which entered prior to the suspension.

Not correct I think. The insurance crisis made the ARP a necessity.

http://www.irishstatutebook.ie/2010/en/si/0495.html

shoes34 · 20-01-2011 6:26pm

Still waiting to get the insurance and now some of the Solicitors are being made redundant.

Solicitors Insurance

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