In the aftermath of the Dreamvar v. Mishcon de Reya case, JM Glendinning Professional Risks is concerned about the impact other similar cases of fraud will have on property transactions made by solicitors and the implications for property purchasers.
Potentially, large losses would be payable from the law firm’s Professional Indemnity Insurance (PII) should they be affected by property transaction fraud, thereby affecting future insurance premiums and having a detrimental effect on the firm’s claims history.
A new policy has been developed by Dual Asset Underwriting (Dual), a well-known legal indemnity insurance provider, which we believe conveyancing law firms should be investigating. This policy can provide a payment to cover any lost funds following a fraudster duping a law firm and the purchaser into believing the fraudster owned the property. Instead of the law firm having to claim against their PII policy, this policy would cover the shortfall to the purchaser or lender.
Premiums start at £30 plus insurance premium tax and any interested law firm would need to incept the policy on every residential conveyancing transaction. The process for incepting such policies is straightforward and we would recommend that all of our clients and contacts look into this.
We have partnered with Dual to provide this policy, as well as the other legal indemnity products. Dual provides via this website. For more information or to arrange a meeting to discuss this please contact Kate Cooper on 01943660816 or firstname.lastname@example.org.