Professional Indemnity Insurance Renewals
Professional Indemnity Insurance is often expensive and sits in the top 5 expenditure items in a firm’s expenses. Actively managing and controlling this spend is therefore sensible from a financial perspective and active management of premiums also involves improving risk, which in turn has much wider benefits for a law firm.
A firm that wishes to actively manage its insurance premium levels must do more than avoid claims and submit a renewal form each year. Law firms are and have become more sophisticated, and approach risk and compliance in different ways.
If your systems and processes assist with the management and minimisation of risk, it is appropriate to set out to the insurer why the firm should view differently, and not put into the common risk pool.
This service is designed to provide firms with guidance, an independent assessment of the way in which the firm approaches risk management and where improvements are recommended to actively demonstrate to an Insurer that the firm is in control of risk.
How can you actively and positively influence your Professional Indemnity Insurance premiums?
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For more information about our Professional Indemnity Renewal Service, you can call us on 0203 911 9710 or you can email us at info@thestrategicpartner.co.uk.
Professional Indemnity Renewals – The Detail
Manage and control your Professional Indemnity Insurance premiums through effective demonstration of an approach to risk and compliance that takes you out of the common risk pool.
Every law firm requires Professional Indemnity Insurance to be able to operate. Due to the risks involved in the provision of legal advice, premiums can be expensive, and firms have to work hard to control their premiums or risk them escalating.
A firm’s premium can and will be influenced by a range of factors, some of which are outside of a firm’s control (such as market conditions) and others that a firm can control (such as negligence and supervision).
The days of a firm simply submitting an application form for renewal of their Professional Indemnity Insurance are long gone (or should be). If a firm wishes to catch the attention of the Insurer and demonstrate that they require special consideration, they must be able to demonstrate how they manage and effectively control risk.
It is not sufficient to have a clean negligence record. Negligence can appear at any time and firms must be able to demonstrate an approach to ongoing risk control that provides the Insurer with confidence that the firm is always controlling risk and remains responsive.
Insurers do not want to lose low-level risk firms to a competitor, and it is up to a firm to ensure that they represent a low-level risk and can actively demonstrate that to their Insurers.
The Strategic Partner works with firms to build a robust process to risk management that is well evidenced so that the Insurer can see proactive steps being taken by the firm to control and manage risks to prevent claims.
Risk is also much wider reaching than insurance claims. Insurers will be concerned about other factors, such as the financial stability of the firm and their compliance with regulations. Firms that are financially unstable or under investigation by the SRA, pose risk and that will impact how the firm is viewed at the time of renewal.
Being able to demonstrate control over the firm’s finances and the ability to respond to internal and external factors alongside full compliance with the regulators’ requirements, is an essential element of a firm’s risk management strategy.
Our service focuses on all the above and provides firms with an active demonstration of why their Insurer should regard them as a good risk and rate them positively.
The service includes:
- Identification of risk and establishing methods to remove or control risk
- Working with the firm to review and strengthen its approach to risk management and compliance in advance of the renewal, to ensure that the firm can demonstrate a proactive approach.
- Updating and replacing policies and procedures, and ensuring they are proportionate and fit within the firm.
- Preparation of renewal forms in conjunction with the firm
- Preparation and reporting to Insurers as part of the renewal process on the activities of the firm, the work performed, and how it continues to manage and control risk.
- Necessary training for staff and supervisors
The focus of this service is not only to prepare the firm for renewal and but to ensure preparatory work is undertaken throughout the year to implement necessary changes to improve risk management, enabling the firm to demonstrate its understanding of risk and to evidence the actions taken to control it.
Enquiries
For more information on our Professional Indemnity Renewal Service, you can call us on 0203 911 9710 email us at info@thestrategicpartner.co.uk or make an online enquiry.