Market wide open for solicitor indemnity cover

Solicitors can now go full steam ahead in finding insurance on the open market following last week's news that 12 insurers had signed up to the Law Society's minimum terms.The first tranche of insurers to sign up to the qualifying insurers agreement are CGU, Hiscox Insurance, Royal and SunAlliance, Saturn Professional Risks, The Underwriter Insurance, Zurich and St Paul International.

They will provide insurance through the managing general agency.

Those offering insurance through brokers only are: Ace, Admiral Underwriting, R E Brown & Others, Cox Syndicate and Hiscox Syndicates.

Other insurers are expected to follow suit as there is no deadline for signing up to the agreement.

Firms will be able to go to the open market for insurance from September, when mutual insurance through the Solicitors Indemnity Fund ceases.Michael Mathews, chairman of the Law Society's Indemnity task force, said it was 'very gratifying' that so many insurers had signed up so quickly.

He added that a large number of insurers coming forward was good for the profession because firms 'could now start thinking what they should be doing in September and with whom'.'Some insurers may look to insure specific sectors within the profession, while others may offer insurance more broadly.

It does look as if most firms will have a reasonable choice of insurers,' he added.See feature, page 24

Sue Allen