Staggered renewal dates for professional indemnity insurance (PII) and a return to the Solicitors Indemnity Fund (SIF) are being considered by the Law Society’s PII crisis group, as the number of firms in the assigned risks pool (ARP) looks set to register a six-fold increase.

As the Gazette went to press this week, 149 firms were in the ARP, with the 60-day grace period – where firms can obtain backdated PII cover to the 1 October deadline – about to end. The ARP provides PII for firms unable to find cover with conventional insurers, but charges much higher premiums.

Law Society President Paul Marsh said the Solicitors Regulation Authority would be consulted on whether the rules governing insurance renewal could be changed.

The PII crisis group is consulting with solicitors, insurers and brokers. A practice note will be issued ahead of renewals next year. Marsh said: ‘The slight increase overall in premiums in 2008 does not reveal the myriad problems and difficulties many small firms experienced. We need to drill down, identify those problems and look at how best to alleviate them.

‘The reason we felt it necessary to set up this sub-group was to best prepare for the next renewal date and hopefully ensure the profession are better placed, in case we see these trends happen again. This is the first phase in reaching that aim,’ Marsh said.