In an article posted on mortgagefinancegazette.com, Optima Legal’s lead partner examines what he calls the PII revolution affecting solicitors’ firms. Having considered the planned changes to the Assigned Risks Pool (ARP), the effects of the common renewal date and the particular implications for lenders in property transactions, the author moves on to an issue that is often overlooked – the financial security of the professional indemnity insurers themselves, citing Quinn Insurance as an example of what can go wrong.
Given that the forthcoming European Directive designed to set levels of minimum solvency will not come into force until 2013, it would appear that until then law firms will still have to make their own judgements about whether or not an insurer has the necessary financial resources should they have to claim on their professional indemnity insurance.
