Solicitors' must consider Insurers financial security rating  for October renewal date 

8th September 2011, London: September is a very busy month for the Solicitors' Professional Indemnity (PI) insurance market as the 1st October renewal date gets ever closer. JLT Specialty Limited (JLT) warns Solicitors that they must consider the financial security rating of the insurer behind any terms they receive for renewal of their PI insurance, at this critical time.

Mike Perry, Partner, JLT, says "As was seen when Quinn Insurance Ltd was placed into administration, the failure of a qualifying insurer is a very real possibility. It was fortuitous that timing and circumstances of Quinn's demise did not lead to firms having to buy replacement cover but will this be the case if another Qualifying Insurer becomes insolvent? It's easy for Solicitors to get blinded by price but they must consider more than that".

In the event that a Qualifying Insurer becomes insolvent they will be required to buy replacement cover within 4 weeks of the insolvency with the likelihood of no return of premium from the insolvent insurer.

Mike Perry concludes, "What looks like a competitive premium now may not look so attractive if you are faced with the possibility of having to pay twice for your professional indemnity insurance. You should therefore discuss the financial security of the insurer with your broker before making a decision".

ENDS

Enquiries:

JLT Group Corporate Communications

Isabella Young 
T: +44 (0)20 7558 3387
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