Legal Business

Professional Indemnity – There may be trouble ahead

It feels like 2014 again as the SRA pushes for an upheaval to the PII market amid benign conditions for insuring law firms. But with negligence claims mounting, how long can the calm last?

In what felt to many in the profession like a bureaucratic version of Groundhog Day, the Solicitors Regulation Authority (SRA) again issued a discussion paper on professional indemnity insurance (PII) in July. Groundhog Day, because the SRA put back on the table many of the proposals it had originally suggested around the same time last year, again suggesting a reduction in the minimum compulsory cover levels for PII from £2m-£3m to £500,000 and the requirement that law firms assess the PII cover level appropriate for their work themselves.