Professional Negligence: The millionaires' club
In September 2000, the provision of compulsory professional indemnity moved from SIF to the commercial insurance market. But has this led to the greater competition and reduced premiums that were hoped for? Mark Hick and Samantha Holland take a look
On 1 September, 2000, the provision of the £1m minimum level of compulsory professional indemnity (PI) insurance under the Solicitors’ Indemnity Insurance Rules switched from the Solicitors’ Indemnity Fund (SIF) to the commercial insurance market. For many solicitors, PI insurance premium payments constitute their largest annual outlay, after rent and salaries. The aim of the move to the commercial market was improved competition, leading to greater choice and reduced premiums for solicitors’ firms. Five years on, has this aim been achieved in practice?
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