Indemnity: impact of claims management companies fuels personal injury negligence claims

Claims relating to The Accident Group (TAG) and other claims management companies have made personal injury the greatest source of professional indemnity claims against solicitors for the first time, figures from broker Alexander Forbes Professions have revealed.


Personal injury claims notified to insurers in the past 12 months jumped from 11% to represent 18% of all claims - overtaking commercial and domestic property as the primary source of claims. Both types of property work fell from 20% last year, to make up 17% of claims each.


Financial work has also become a major source of claims, due to the mis-selling of financial products including endowments. These claims doubled to 10%, making it the fourth largest field of work for insurance claims. Trusts and probate work dropped from 12% of claims in 2002/03 to just 7% last year.


For sole practitioners, commercial property remained the largest source of claims, at 36%, followed by personal injury at 13% and other litigious work at 12%. Only 6% of claims notified by sole practitioners related to domestic property.


Glenda West, director at Alexander Forbes Professions, said: 'As expected, TAG and other claims farmers have had a resounding impact on claims faced by solicitors over the past few months.


'As we get closer to renewal, we expect more firms to notify potential claims due to their involvement with such companies.


'It is anticipated that the gap will widen, pushing personal injury further into the lead as the highest cause of potential claims against solicitors.'