Solicitors are facing premium rises of around 35% for professional indemnity (PI) cover, according to Zurich Professional.
Over 9,000 solicitors in the UK are obtaining quotes for their PI cover which, at present, is renewed on 1 September. Around one third of solicitors are insured with Zurich Professional.
David Coughlan, head of Zurich Professional, said: "In 2002, the total market went up by around 35% and rate rises are going to be in the same region this year."
The rise in PI rates follows similar hikes last for employers' liability and public liability insurance.
Paul Fegan, head of liability insurance at the ABI, said: "The professional indemnity market is coming under some of the same strains as the markets for other liability-type products.
"The compensation culture is alive and well in the arena of professional services, with the result that insurers are under similar pressures to increase premiums and manage risk exposure more tightly."
Solicitors are also unhappy that insurers are no longer offering coverage over a number of years. Michael Seymour, partner of Lovells, said: "Before it was easier to get a two or three-year deal as insurers were keen to obtain business on a longer-term basis.
"It is virtually impossible now as insurers do not know which way the market is going and they do not want to commit themselves to a two-year policy."
