PracticeAuditNegligence claims against advisers jump, finance firm claims

Negligence claims against advisers jump, finance firm claims

Negligence claims highest for 11 years, finance firm claims

Negligence claims against professional advisers have reached an 11-year-peak
according to a finance provider which claims both insurance claims and premiums
are rising.

A study by Syscap has found High Court negligence cases launched against
professional firms has jumped 125% to 332 in 2009, up from 147 in 2008.

The recession triggered the steep increase according to the agency with
investors or lenders hoping to recover falling asset values.

Syscap also cited the administration of Quinn Insurance which it believes
placed upward pressure on the cost of professional indemnity insurance and
forced up premiums.

The figures follow a March report, by law firm Reynolds Porter Chamberlain
LLP which found a sudden jump in negligence cases against accountants.

“The sudden jump in professional negligence claims against accountants last
year suggests that claims relating to the credit crunch have started to reach
the courts,” Jane Howard, partner at RPC said at the time.

Further reading:

Negligence:
an illegal defence?

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