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Sorry "2 Hours ahead of GMT" There is unlikely to be a significant decrease (if any) in premiums for a reduction in cover below the current £3,000,000.

There is danger on the horizon from the case of Godiva Mortgages Limited V Travelers scheduled for November/December 2014. The Law Society is hoping to force Travelers to pay for a series of claims, aggregated under the terms of the policy, above the minimum £2m cover. This is to reduce exposure to the compensation fund. Whilst understandable this is a very short term outcome. The downside could be very significant indeed.

In the event of a win for the law society insurers will be even less likely to enter the market and will demand even higher premiums going forward.

The only way this will be improved is if the SRA limits the compensation available to claimants.

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