The credit crunch is expected to lead to a rise in claims against solicitors, placing added pressure on professional indemnity cover, but Rionne Preuveneers says escalating premiums are not inevitable, even for conveyancers who are traditionally the hardest hit
In times of financial instability property investors, building societies and lending institutions look to recoup their own property losses from those deemed ‘responsible’, and solicitors are among those looking likely to stand accused. Investors will blame all those who could potentially have misadvised them, maintaining that improper practices have taken place.
Such accusations will lead to the demise of the bargaining power firms once held over insurers. Many solicitors experienced a ‘golden era’ in the wake of the competitive professional indemnity market, but now, solicitors – especially those specialising in conveyancing – are gritting their teeth in anticipation of higher premiums. Looking back, it seems incredible that befo...