Lawyers face indemnity crisis as claims soar
CLAIMS against solicitors over the way they handled property deals have more than doubled in two years, leading to a renewed crisis for lawyers seeking professional indemnity cover.
The Solicitors Mutual Defence Fund (SMDF), which insures almost six out of 10 solicitors, has revealed in its annual accounts that the number of professional negligence claims has doubled since the onset of the financial crisis in 2007. The SMDF, which provides professional insurance cover for solicitors, has revealed claims against solicitors reached an all-time high last year.
Some 633 claims were notified to the SMDF between 2007 and November last year, with more than half of those relating to commercial and domestic conveyancing transactions.
However, the SMDF said it is optimistic that the numbers of negligence claims have peaked, with a fall off in the notification of claims this year.