Dozens of law firms caught in ‘very difficult’ PI market have closed
Nearly 50 law firms have had to close in just over a year as soaring professional indemnity costs bite hard, according to a legal adviser.
In the last three months nine law firms have closed. In the preceding 12 months, another 37 closed, according to accountant and legal business adviser Hazlewoods.
Hazlewoods calculated that on average PI cost is equivalent to 5% of a law firm’s turnover. For conveyancing law firms, this can be as high as 20%.
The firm believes the rise in premiums is made worse by insurers exiting the market or reducing capacity.
The cost of insurance is becoming an increasing problem for law firms. This is
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