Marsh warns as many as 800 firms will have to join pool

Broker Marsh says premiums for solicitors’ professional indemnity cover could rise by 20% and will be worse for small firms with fewer than five partners, The Times reports.

Sandra Neilson-Moore, a managing director at Marsh blamed:

  • The demise of Quinn – it covered 2,911 law firms. Many now face premiums three times higher. Some will struggle to find any cover.
  • Big insurers, such as Zurich, have cut their exposure to smaller practices, which they consider not profitable enough to justify the growing risks.

The “assigned risks pool” (ARP), currently has 213 firms but insurers predict that up to 800 firms could enter it this year. Those that do will have to pay more than a quarter of their turnover in premiums.