News Article Published:
Monday, 15 September 2008
Category:
Insurance
Law firms are anticipating a rise in the cost of Professional Indemnity Insurance (PII) following "several years of static prices", it has been claimed.
Six in ten firms expect PII marketing communications to show an increase in the cost of cover this year, according to research by Key Business Finance.
Some 88 per cent of law firms claim that they have been saving ahead in anticipation of a rise in their PII insurance services.
Nick Sanders, managing director of Key Business Finance, said: "Our recent survey findings suggest that many firms anticipate a rise in PI insurance costs following what have been several years of static premium prices.
"We have already seen an increase in demand for short-term working capital related loans and anticipate this trend will continue through the current economic downturn as firms look to safeguard their liquidity by maintaining cash reserves."
However, he issued a word of warning to PI insurance services marketers by suggesting that many firms will opt to reduce costs by selecting a separate finance company for their cover.
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