Insurance rip off - slightly different this one

No not bike insurance. I'm talking professional indemnity insurance. I have to have it - no choice - I can't practise without it in case someone sues me for negligence.

In 4 years I haven't had any claims. This year our turnover is around 35 - 40% lower because of the nosedive in property work, and we have lost a partner, and our staff is smaller. So how insurers can justify a rise of 54% I just don't know.

Plus which - only found out the figure this afternoon, have to renew for 1 October. Leaves hardly any time to get other quotes.

So how much?

£23,050. Pah

[Binky]

Well if you HAVE to have it they're in the pound seats aren't they.

Even if there are competitors, they are likely to be in unwritten cahoots to keep costs up.

Unlucky Ed. Really feel for you.

[anna]

Sadly I know this all to well having worked as a PII broker in a past life. All solicitors will have to renew on the same date, and so the insurers will only open their doors to quote at a set time prior to renewal.

If you are going through a broker then they will have approached a pannel of insurers and you will unlikely get a better quote through anyone else unless a different broker has a different pannel of insurer´s that they are able to approach.

I wont go into how they will justify the increase as I have been out of the industry too long now to know what set of circumstances the market is facing this year.

I would suggest that you speak to other Small practices and see if they are also seeing this increase. I think that sadly though you may not be on your own seeing this hike.

I should imagine though if you are carrying out any conveyancy work and this makes up more then 30% of your business this could be the reason for the heafty premiums.

Speak to your broker, ask for their breakdown of who they have sent your application off too, and then speak to other brokers and see if their pannel of insurer´s is different.

Was their explanation something like... "Unfortunately due to the economic situation, we are unable to offer you a lower quote due the economic situation. When the economic situation gets better we'll be able to provide you economic situation and economic situation will better us for getting you a better economic situation quote."

I dun mind when it's geniune, hard to find any business that isn't affected, but cranking up the prices really does deserve justification when it's as bad as that... did they not justify themselves?

[DarrenSV650S]

I'm struggling to feel sorry for you Ed...

Originally Posted by DarrenSV650S

I'm struggling to feel sorry for you Ed...

I don't care whether you do or whether you don't. I only posted it here to show that insurance is a con, whichever type you're talking about. PI insurance affects every solicitors' practice, and I know I won't be the only one simply to pass it on to clients by way of a price rise.

[embee]

When has anyone ever managed to sucessfully sue a solicitor for malpractice re. conveyancing?

[anna]

Originally Posted by embee

When has anyone ever managed to sucessfully sue a solicitor for malpractice re. conveyancing?

You would be surprised at the numbers, and just fighting the claims cost hence the insurance.

Regarding whether it is always a con, not sure I agree with you Ed, although I do think that is a huge chunk of money, especially for SME´s.

wtf..

what risks are they actually insuring..!?

Thats stupid money

not a very happy b day!

[anna]

Originally Posted by 454697819

wtf..

what risks are they actually insuring..!?

Any claim that is made against you.