UK Solicitors & increased professional indemnity insuran

LoadingFavourite

This topic contains 6 replies, has 4 voices, and was last updated by Profile photo of Anonymous Anonymous 8 years, 1 month ago.

  • Author
    Posts
  • #54443
    Profile photo of Anonymous
    Anonymous
    Participant

    An interesting article in the Law Society Gazette highlighting how increased professional indemnity insurance costs are forcing small firms to close.

    I guess the decline in conveyancing fees doesn’t help either and of course bear in mind our UK colleagues don’t get away with standard 1% + VAT fees as the market is competive with many e-portals and most won’t pay more than a few hundred in conveyancing fees.

    It’s a good thing Spanish solicitors don’t need to buy professional indemnity cover from a list of approved insurers to the tune of GBP2m.

    http://www.lawgazette.co.uk/news/firms-shut-cover-crisis-deepens

  • #87299
    Profile photo of Anonymous
    Anonymous
    Participant

    Even if the Spanish lawyers buy such a guarantee . Do you think the guarantor will ever pay !!!!.

  • #87300
    Profile photo of Anonymous
    Anonymous
    Participant

    Nothing in Spain is worth the paper it’s written on – sadly too many on this forum know that only too well despite holding bank/insurance guarantees.

    On the other hand it’s all too easy to bring negligence claims in UK and most settle quickly which is one of the reasons PI cover is on the increase and all the more difficult for sole practicioners to obtain at reasonable prices.

  • #87307
    Profile photo of Anonymous
    Anonymous
    Participant

    Why shouldn’t it be easy to bring a claim for negligence if there is merit in it?

    Ditter

  • #87309
    Profile photo of Anonymous
    Anonymous
    Participant

    Because this is Spain and as has been proven in many recent court cases, it all depends where the judges’ loyalties lie.

  • #87310
    Profile photo of Anonymous
    Anonymous
    Participant

    I agree it should be easy and straightforward to bring any claim for negligence in any jurisdiction. But that said the UK in latter years has developed a claims culture because it’s so easy to get a payout.

    But Spain will never be that way because the many Spanish Law Societies in existence will not reprimand the many failing lawyers on their books – and more so when it is an extranjero making the complaint!

    What infuriates me most is the high fees charged by Spanish lawyers and then the shoddy work they do if they do anything at all that is and dare you question them then there is complete silence.

    Complaints against solicitors in the UK are always taken very seriously – the Solicitors Regulation Authority will intervene and/or the Solicitors Disciplinary Tribunal will take action.

    Spain needs to develop a highly regulated legal profession (also in every other area!) but if they did then that would mean many exising lawyers being struck-off or restrictions placed on their practising certificates.

  • #87340
    Profile photo of Anonymous
    Anonymous
    Participant

    A friend, premium has gone up from £8000 to £48,000. Yes, you read it correct £48,000. He is contemplating to close down his practise.

    As most of his income was from conveyancing. A very competitive area in the present climate and in the absence of mortgage lending I can see his reasons.

You must be logged in to reply to this topic.