It’s not a sexy subject, and it’s not particularly fun to write a stream of gloomy reports on it, but solicitors’ professional indemnity insurance (PII) is a hot topic for the profession. We are exactly eight weeks from the 1 October renewals deadline and there is already plenty to ponder.Two of the top three PII insurers – Chartis (formerly AIG) and Zurich – have already said they will shy away from taking on any extra small firms and sole practitioners this year. This is no help to the 3,000 firms likely to be left in limbo by the expected departures of Quinn and Hiscox from the market.

Unfortunately, according to rumblings among brokers, it looks like more insurers will follow Chartis and Zurich.

Bur rather than dwell on the negatives, it’s probably better to take action. Some years ago, I remember seeing a Greenpeace T-shirt with the slogan: ‘The optimism of the action is better than the pessimism of the thought.’ I am no philosopher, but ‘action’ sounds like the right option if our eco-warrior friends are correct.

So in more positive news, the Law Society said today that it will open its PII helpline on 16 August. The helpline advised lots of worried solicitors last year on how to get cover.

Still, a call to the helpline isn’t meant to be the first step in the renewal process. I’m sure that most will have read the Law Society’s PII practice note on this, but if not, or if all is forgotten, perhaps a little refresher: Chancery Lane advises that firms begin collating information for their proposal forms in May (especially as insurers are beginning to ask for more detail); start researching the indemnity market in June; and submit proposal forms to brokers or insurers in mid-July.

If you’re behind on this schedule, probably best to put some time aside asap to catch up. The practice note warns: ‘In a soft market some firms have found it advantageous to submit their proposals just before the renewal deadline. This approach is much riskier in the current market. Furthermore, some qualifying insurers limit the amount of business they will accept. Once this limit is reached, they will stop offering cover to the market.’

  • Updated advice from the Society, including the latest issue of its Insurance Matters newsletter, is available here