Law firms are leaving it 'alarmingly' late to renew their professional indemnity insurance, brokers warned this week, despite the risk of ending up in the punitive assigned risks pool if renewals are not completed on time.


A survey of more than 120 firms by broker PVY revealed that 89% had yet to renew their insurance, despite the looming 1 October deadline.



However, expectations among those who have not renewed are high, with 40% anticipating savings of up to 20% on last year's premium. Of those that have already renewed, 41% saw their premiums drop by up to one-fifth.



Of the firms that expected to see a rise in premiums, one-quarter said this was likely to be because of other firms' claims rather than their own.



PYV director Nick Pointon said: 'It is very worrying that nearly eight in ten firms say they have not renewed their insurance yet, as a last- minute rush will not help firms get the best deal. But it is good news that those firms that have so far renewed have seen a drop of 20%, especially given that many legal firms have seen their income go up this year.'



Steve Holland, director at broker Alexander Forbes Professions, said: 'It is not a good idea to leave it too late, as there are 10,000 law firms vying to renew at the same time. If firms submit late, they will be at the back of the queue. Without insurance they cannot practise, and they could end up in the assigned risks pool.



'In terms of tactics, the market is soft and there are deals to be had without having to leave it late. It is not in anyone's interests to delay.'



Rachel Rothwell