Hundreds of firms face ARP as D-day for indemnity looms

More firms than ever are set to enter the assigned risks pool (ARP) on 1 September after insurers predicted that many solicitors will have failed to renew their indemnity insurance policies.

Michael Rendell, director of broker PYV, said he estimated that - extrapolating from his company's renewal data - 40% of solicitors firms would fail to renew their policies before the cut-off date this year.

He said: 'They are later in renewing than in previous years.

Part of the problem is that many insurers quote to firms at the beginning of August when many partners go on holiday.'

Jonathan Davies, product manager at market-leading insurer the St Paul, said hundreds of firms have not yet arranged cover.

Those that are forced to enter the ARP will be liable for a punitive default premium, he warned, adding that it would then be harder to find insurance.

Mr Rendell said the average premium rise so far was 25%.

Jeremy Fleming