Am I just naive?

Jimj40

I just received the outline costs from the solicitor for the conveyance on my property and I notice that I am expected to pay £50 towards his PI insurance.

Am I just naive to be p*ssed off about that? Surely that is a requirement of his professional body, and a sensible precaution for his business, and as such just counts as an overhead, and allowable expense, for him? Why on earth would a customer expect to be charged, on top of a substantial fee, for the running expenses of a supplier's business?

I find it rather galling that his quote of £600 actually works out at £595.50 (inc VAT) PLUS £50 for his PI and another £20 for a Telegraphic Transfer.

I wonder if my clients would welcome paying a non-negotiable "contribution" towards my rather expensive breakfast coffee and pain au chocolat, followed perhaps by lunch at Le Manoir to recharge my batteries for my afternoon's efforts on their behalf?

robnye

have you tried querying it with the solicitor.... hard i know on a friday afternoon.....`

Fifer

I'm not sure what other source of income the solicitor will have to cover the costs of running his office. Ultimately all costs come out of the money he earns, which is money you pay. I suppose the reason this sticks out is that he has itemised it rather that just including it as an overhead in his hourly rate. No matter though, as you'll be paying for it one way or another. There's no-one else to, is there?

Bossyboots

Please see your client care letter and see if this is included. If it is, you have already agreed to pay it.

I have never seen this before. I personally wouldn't pay it. I think it is a real cheek. Is this figure just plucked out of the air or is it a carefully calculated proportion, reflecting the risk to his business spread evenly across his clients.

It is a business overhead and as such, I am not sure he can bill you for it this way. I can't find anything in the rules at the moment but will look again when I have more time. I am pretty sure though that you cannot pass overheads to your clients. You are not allowed to charge for, for instance, in house photocopying (although you can claim a disbursement for getting photocopies made outside the office). The hourly rate set is supposed to be set at a rate that incorporates overheads.

withabix

PI is a business overhead, just the same as electricity, water, gas, business rates, telephone line rental, your solicitor's Merc E-Class and the boob job for his secretary etc etc

By charging you for his PI, he is either a)admitting he is incompetent or b)taking the p*ss.

No doubt he is also claiming tax relief on the cost of his PI as well!!

hopefulfooluk

Let's say this solicitor has 200 clients - 200 x £50 = £10000

That is one hell of a PI premium!!!

GDB2222

hopefulfooluk wrote:

Let's say this solicitor has 200 clients - 200 x £50 = £10000

That is one hell of a PI premium!!!

Yes. I wish mine were as low as that. I kid you not. (And no, I do not have a bad claims history.)

Bossyboots

hopefulfooluk wrote:

Let's say this solicitor has 200 clients - 200 x £50 = £10000

That is one hell of a PI premium!!!

Actually, that is probably less than his actual premium. Solicitors indemnity insurance is very expensive.

However, that does not mean you can pass the overhead onto your clients as a fee.

hopefulfooluk

Seriously? How much does it cover them for then?

Mine is £234 and that covers me for £500,000....

GDB2222

hopefulfooluk wrote:

Seriously? How much does it cover them for then?

Mine is £234 and that covers me for £500,000....

That's cheap. What do you do?

Mine is over £10k for £2m cover.

hopefulfooluk

I'm a computer security contractor.