London, United Kingdom, September 17, 2014 --(PR.com
)-- Earlier this year, the Solicitors Regulation Authority proposed reducing the mandatory minimum level of solicitors professional indemnity insurance to £500,000, from its current figure of £2 million (£3 million for LLPs). The regulatory body said this would reduce the size of solicitors' insurance premiums.
However, the Legal Services Board said there was not enough evidence to support this proposal, and delayed the deadline for its decision until August 2015.
Commenting, Kevin Burke, representative for solicitors professional indemnity insurance brokers Total Insurance, said:
"The overwhelming majority of claims against solicitors are valued at less than £500,000. Insurers recognise that most clients will never see a claim exceeding this figure.
"Law firms that are exposed to claims of this size, such as conveyancers in the South East or medical negligence solicitors, have their premiums adjusted accordingly.
"As £500,000 covers insurer's exposure in almost all professional indemnity compensation claims, it does not seem clear that premiums would reduce significantly should the SRA's proposed reduction go ahead.
"Additional evidence about the impact of the SRA's proposals will become available in the coming months, and insurers will have time to adjust their premiums accordingly. However, our solicitors professional indemnity insurance brokers are doubtful that premiums will fall significantly should the proposed reduction go ahead."
Notes for editors
Total Insurance (http://totalinsurance.uk.com) provides solicitors insurance and other commercial insurance products across the UK. An in-house team of underwriters and close relationships with insurers enables the firm to turn around quotes in 48 hours.