Solicitor fees likely to rise.

At present any practising solicitor is required to have professional indemnity insurance up to a value of €2.5 million (per claim) this is a cover that allows the solicitor to pay out if they have a claimable fault in their business – such as a mistake in reading title or other such issues. This insurance is not optional, they have to have it in order to practice and the minimums are set out by the Law Society of Ireland.

Recently professional indemnity insurance has gone through a serious repricing, it has to do with the COR (combined operating revenues) of firms offering insurance. COR is part of the way that insurance companies make money, say the actual cost of providing a person with insurance (the type doesn’t matter) is €100, the insurer takes that money and generally invests it, if they make 8% on the markets with that €100 then they make €8 and in turn they can offer you insurance for less (eg: €95) the next year and …

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