Insurers demand full payment forcing lawyers to use finance
Solicitor PI insurers have refused to allow law firms to spread premium payments forcing many to take out finance to pay for their higher premiums, the Law Society Gazette reports.
Independent finance providers Syscap and Key Business Professions (KBP) have reported rises in the number of firms asking for finance. Mark Gidge, chief sales officer at Syscap, said that the company has seen a general increase and a “marked increase” from larger firms.
Nick Pointon, managing director of insurance broker PYV, said that insurers demand payment before they issue cover. Nick Sanders, managing director at KBP, said that more insurers demand lump sum payments.
Solicitor PI premiums have risen because of rising claims. City firm Reynolds Porter Chamberlain said 80 professional negligence cases were heard against lawyers in the High Court in 2008, up from 31 in 2007.