Solicitors’ Professional Indemnity InsuranceSeptember 2009
Changes to Irish Minimum Terms
The end of the Irish property boom has resulted in an unprecedented rise in both the number and size of negligence claims against solicitors arising out of property transactions. This has coincided with a reduction in insurers’ investment returns and is expected to result in very substantially higher premiums for solicitors across the board when policies are renewed on 1 December 2009.
Against this background, a special Law Society of Ireland Task Force was set up earlier this year to consider how best to ensure that professional indemnity insurance cover remains generally available to solicitors at rates that are not ruinous. In order to contain premium rises as far as possible, the Task Force proposed changes both to reduce the level of compulsory cover and to enable insurers to impose additional exclusions. Those changes have now been approved by the Council of the Law Society and have been brought into force by the Solicitors Acts 1954 to 2008 (Professional Indemnity Insurance) (Amendment) Regulations 2009 (‘the Regulations’) and the Minimum Terms and Conditions prescribed by the Regulations. Unless otherwise stated, the changes will apply as from renewal on 1 December 2009.
These changes are outlined in the attached document.
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