More than 150 firms are still trying to get professional indemnity insurance (PII) cover a month after the 1 October deadline. These firms will be prevented from taking on new business by the SRA and ultimately will have to shut down if they cannot get enough cover. The deadline for obtaining cover is the 29th December 2013
It's been a difficult year for PII renewals with a massive regime change implemented by the SRA aimed at stabilising the market.
The cost of the PII premium was the immediate cause of the demise of Midlands firm Hacking Ashton a meeting of creditors heard. The firm is now in administration.
Experts warned of higher premiums at the bottom of the profession but it will be some time before the true picture is known.
If your firm is unable to obtain insurance then obviously it cannot continue. However, if your firm has had to pay much higher premiums to practise, and it is putting pressure on cashflow, then there may be solutions. Have a look at our help for lawyers pages on KSA Group.
If you want to talk to our expert on legal matters and insolvency.