Apart from the millions of dollars in claims owed to personal lines policyholders, the situation regarding many commercial lines is causing concern. For example, HIH wrote as much as 50% of home warranty scheme policies in all states except Queensland. Now builders are bailing out, leaving work uncompleted and in some cases going broke. An estimated 20,000 builders are affected.

About 90% of barristers in Victoria and 50% in NSW are not only exposed to litigation, and many of them are also owed millions of dollars for work performed for HIH. The NSW Law Society, which wrote its indemnity scheme through HIH, is funding any claims shortfalls through its mutual indemnity fund.

Australia’s lawyers aren’t the only ones to lose: HIH was also an underwriter to the Hong Kong Bar Association’s PI scheme.

At the end of last week real estate agents’ groups were still seeking coverage for their PI scheme. We’d be interested to hear of any other professional groups finding it hard to obtain cover.