Professional Indemnity 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 has much wider benefits for a law firm.

A firm that wishes to actively manage its insurance premium must do more than avoid claims and submit a renewal form each year. Law Firms are and have become more sophisticated and approach to risk and compliance in different ways.

If your system and processes assist with the management and minimisation of risk, it is appropriate to set out to the insurer why the firm should be looked at differently and not put into the common risk pool.

This service is designed to work with firms and provide guidance and an independent assessment of the way in which the firm approaches risk management 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?

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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 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 they 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 are a risk that requires special consideration, they must be able to demonstrate how they manage and effectively control risk.

It is not enough to just 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 comfort that the firm is always controlling risk and responsive.

Insurers do not want to lose good risks to a competitor, and it is up to a firm to ensure that they are a good risk and can actively demonstrate to 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 than just claims. Insurers will be concerned about other factors such as the financial stability of the firm and their compliance with regulation. Firms who are financially unstable or under investigation by the SRA, pose risk and that will impact how the firm is viewed.

Being able to demonstrate control over the firm’s finances and ability to respond to internal and external factors alongside full compliance with the regulators’ requirements, is an essential element to a firm’s risk management strategy.

Our service focuses on all of 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 to risk
  • Updating and replacing policies and procedures 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 activity of the firm and their work performed and continue to manage and control risk
  • Necessary training for staff and supervisors

The focus of this service is to prepare the firm for renewal and implement necessary change to improve risk management, enabling the firm to demonstrate its understanding of risk and to evidence the actions taken to control the risks the firm has.

Enquiries

For more information on our Professional Indemnity Renewal Service, you can call us on 0203 911 9710 email us info@thestrategicpartner.co.uk or make an online enquiry.

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