Indemnity Costs Place Small Law Firms at Risk

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Small law firms in the West Midlands are at risk of being driven out of business by crippling insurance premiums. A survey of its members by Birmingham Law Society reveals that sole practitioners across the West Midlands faced massive professional indemnity insurance (PII) hikes this year.

However, larger firms fared much better with rises on average of less than 10 per cent and some firms were able to secure a discount.

Law firms are required to take out professional indemnity insurance to cover any negligence claims brought against them by clients.

However, the disparity of rates between small and large firms is growing. Dean Parnell, president of …