Left at the altar by Mr Unrated

The professional insurance indemnity premium is probably the largest expenditure of any small practice. Like marriage it is not something "to be entered into lightly or wantonly".

For some who are left waiting ?at the altar because of an unfortunate previous affair, Mr A Rated may not be immediately available. For many sole practitioners a significant difference in premium is the difference between a reasonable income and just subsisting.

However there comes a point when discerning members of the profession need to realise that once left at the church by Mr Unrated, it is imprudent to remain with him or indeed his replacement friend who steps into the breach.

It was very understandable that in the absence of reasonably priced insurers like Quinn sole practitioners turned to unrated insurers, because of course all approved insurers are FSA approved and guaranteed. However, if such an insurance company, in this case Balva is unable to continue, and a letter is received from the same broker suggesting a replacement such as Berliner, there is more than a likelihood of a problem, and at that point one might think twice.

It is difficult to anticipate ?that an insurance policy once accepted and the premium paid, would not be effective before the policy even starts, but as we know from past experiences, in the financial insurance world anything can happen.

It is obvious that past events will impact on people considering unrated insurance policies in the future. The question is whether they should have been better protected by the SRA and the Law Society. The answer must be a qualified yes.

There must be a mechanism by which the regulator and the professional body and indeed the FSA can at least check that the insurer is sufficiently good for the business to be able to quote and start the insurance year, even though the effect of claims on the insurer during the course of the year mean that it cannot continue to offer insurance in the following year. We appreciate that the Law Society have offered insurance through rated brokers but that still does not protect those who have applied for insurance in good faith and found themselves left waiting at the church. SJ