You have approximately one in seven chance of a motor accident. You have less than one in 150 chance of injuring someone else in a motor vehicle accident but you have a one in 4.7 chance of a professional indemnity claim being lodged against you in any one year. It is also staggering to note that while the number of insured solicitors has increased by 9.7 per cent since 1987 the number of claims has increased by 94.2 per cent and the average cost per claim by 143 per cent. While we can point to many reasons for this including recession, greater consumer awareness, the compensation culture, the 'deep pocket' syndrome and the avalanche of new law in the past decade, it is unrealistic to expect that we can ever turn back the clock. Professional indemnity insurance is now a key cost of doing business, just as is rent, the cost of raw materials in manufacturing, the fire, burglary, public liability, deterioration of stock and other insurances of the corner store.
Risk is here to stay.
Indeed all trends point to increased risk and increased costs of doing business. The Law Society of New South Wales is the professional association for the solicitors branch of the legal profession in the State of New South Wales, Australia. 170 Phillip Street, Sydney NSW 2000, Australia.