RUNNING LATE FOR YOUR PII RENEWAL? GET A FREE QUOTE NOW
RUNNING LATE FOR YOUR PII RENEWAL? GET A FREE QUOTE NOW
RUNNING LATE FOR YOUR PII RENEWAL? GET A FREE QUOTE NOW
RUNNING LATE FOR YOUR PII RENEWAL? GET A FREE QUOTE NOW
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Most law firms renew their insurance every year without looking closely at the details. It feels routine, so the renewal paperwork gets handled at the last minute. But that simple habit often leads to higher premiums, unexpected exclusions, or gaps in coverage that only show up when a claim hits. At Legal Ex Plus, the team sees the same renewal mistakes over and over again, and many of them are easy to avoid with a little planning. This guide explains the most common errors firms make during renewal season, how those mistakes affect their financial and professional risk, and what a firm can do instead. The goal is straightforward: help firms secure the right protection, avoid unnecessary expenses, and keep their solicitors professional liability insurance working for them, not against them.
Rushing a renewal is one of the most common and expensive mistakes. When a firm starts the process late, the options narrow quickly. Carriers need time to review applications, check claims history, and verify underwriting details. A short timeline pushes insurers to take a conservative approach, which often means higher premiums or stricter conditions. Some firms even end up with “forced renewals” because they run out of time to compare quotes. In those cases, they accept whatever terms the current carrier offers, even if the price rises sharply or exclusions increase.
A mid-sized litigation practice once contacted Legal Ex Plus only five days before their renewal date. Their existing carrier added a new exclusion that limited coverage for fee disputes. With almost no time left, the firm had no chance to negotiate or shop around. They had to accept the change, which later cost them heavily when a former client filed a fee-related claim.
Start the renewal process at least 60–90 days in advance. Early preparation gives the firm more choices, more negotiating power, and a better chance to secure stable pricing.
Many firms assume that if the insurer approves the renewal, the policy terms stay the same. But insurers often adjust conditions without calling attention to the changes. Even a single altered definition can shift risk back onto the firm. For example, a modification in the definition of “professional services” may narrow the scope of what the insurance covers. A small change in the “prior acts date” might erase years of protection. These small shifts only become obvious when a claim arises.
A firm only knows its true level of protection after reading the policy carefully. Legal Ex Plus often finds critical gaps during policy reviews, usually clauses that firms assumed stayed untouched.
A lawyers professional liability insurance policy depends heavily on the information the firm shares. Underwriters assess risk based on practice areas, revenue, staffing, claims history, and internal controls. When a firm leaves out details or makes mistakes in the application, it can trigger several problems: Unexpected premium increases Reduced coverage limits Coverage denial during a claim Policy cancellation Common omissions Newly added practice areas Changes in ownership or structure Updated revenue or client volume Disciplinary actions Details about incidents that did not turn into full claims Example A transactional boutique forgot to mention that they had expanded into immigration work. Months later, they faced a malpractice allegation in that area. Because the application didn’t reflect the expansion, the insurer pushed back during the claim review and questioned whether the misstatement affected underwriting. How to avoid this Assign one person to gather all details from partners, paralegals, and administrators. Then have a second person cross-check the application before submission. 4. Ignoring Claims-Made and Reporting Requirements Claims-made policies work differently Lawyers professional liability insurance is almost always written on a claims-made basis. This means the policy that responds to a claim is the one active when the firm reports the matter, not necessarily the one active when the alleged error occurred. Because of that, reporting deadlines matter as much as limits and deductibles. Common mistakes Failing to report “incidents” or potential claims Delaying notice until the firm gathers more facts Not understanding what counts as a reportable event Attempting to resolve a client dispute internally without notifying the insurer Why this is risky If the firm misses a reporting deadline, the insurer may decline the claim even if the underlying error occurred during a covered period. Legal Ex Plus has seen otherwise legitimate claims denied simply because the firm waited too long to notify the carrier. What firms should do When in doubt, report it. Most insurers allow “notice of circumstances,” which protects the firm by locking the issue into the current policy period even if the claim develops later. 5. Focusing Only on Premium Instead of Value A low price can hide bigger expenses Many firms shop only for the cheapest premium. The problem is that a low price usually comes with trade-offs, including: Higher deductibles Narrower exclusions Reduced prior acts protection Weaker consent-to-settle rights Lower sub-limits for cyber or disciplinary coverage A firm might save a little upfront but pay far more during a claim. What to compare besides price The writers at Legal Ex Plus advise firms to review: Defense arrangements (panel counsel vs. freedom of choice) Hammer clause language Sub-limits for key risks Definition of “professional services” Coverage for contract-based liability Add-ons like crisis management or disciplinary defense A well-rounded policy often costs less in the long run, especially when a complex dispute arises. 6. Overlooking Tail Coverage and Prior Acts Dates Why continuity matters Tail coverage and prior acts protection determine whether past work receives ongoing coverage after policy changes. This is especially important when a firm switches carriers, merges, changes structure, or winds down. Frequent oversights Allowing the prior acts date to reset during a carrier switch Ending a policy without buying an extended reporting period (ERP) Not securing individual tail coverage when partners retire or leave Assuming the new insurer automatically honors the old prior acts rights Why this hits hardest during transitions If the prior acts date resets, years of past work lose protection overnight. A single old file can still trigger a claim years later, and without continuous coverage the firm must pay out-of-pocket. Example A partner retired from a small firm but did not buy an individual tail endorsement. Two years later, a former client filed a claim related to the partner’s old case. The new firm structure no longer covered him, and he had to handle the defense personally. How to stay protected Review continuity provisions carefully during every renewal and every structural change. Confirm prior acts dates, discuss tail options, and document all transitions. 7. Not Tracking Internal Risk Controls Insurance reflects internal practices Underwriters measure how the firm handles conflicts, client screening, engagement letters, docketing, supervision, and file management. Strong internal controls usually lead to better pricing and more favorable terms. Many firms only update these systems when something goes wrong. But insurers treat outdated practices as warning signs, and that affects renewal outcomes. Areas where firms fall behind Using outdated engagement letter templates Weak conflict-checking systems Poor documentation of client instructions Inconsistent calendaring Lack of supervision for new associates How to improve renewal results Before renewal season, evaluate internal processes. Update policies, standardise engagement practices, and tighten record-keeping. This reduces both actual risk and perceived risk. 8. Overlooking Coverage Add-Ons That Can Protect the Firm Important but often skipped endorsements Some firms keep the base policy but skip valuable add-ons because they appear optional. In practice, these can save a firm from financial and reputational harm: Disciplinary proceedings defense Subpoena assistance Cyber liability extensions Mediation and early resolution support First-party coverage for breaches involving client data Why these matter Legal practices face more varied risks today. A subpoena or disciplinary notice, for instance, may require immediate legal guidance. Without an endorsement, the firm pays its own defense costs. With it, the insurer steps in early and manages the situation. 9. Failing to Work With a Specialist General brokers may not understand legal risk Many insurance brokers do not specialise in legal malpractice coverage. They may not understand how claims trend within practice areas, how different carriers handle defense, or what a firm needs based on its structure. Legal Ex Plus often works with firms that bought coverage through a general broker and later discovered: Missing endorsements Weak prior acts protection Poorly negotiated terms Higher premiums than necessary Why a specialist changes the outcome A broker or consultant who focuses on lawyers professional liability insurance knows how insurers assess risk, what terms can be negotiated, and how claims histories affect pricing. This expertise helps firms secure better protection without overspending. Conclusion: Renewing a malpractice policy is not a quick administrative task. Each decision affects how well the firm protects its reputation, finances, and long-term stability. The most common mistakes—rushing renewals, ignoring policy changes, sharing incomplete information, overlooking deadlines, and focusing only on price—can cost far more than the premium itself. When a firm approaches renewal with a detailed plan, early preparation, and professional guidance, it secures stronger protection and avoids risks that often go unnoticed until it is too late. Legal Ex Plus encourages every firm to review its policy early, ask questions, and take control of the renewal process. For firms that want help evaluating coverage or comparing options, the team is ready to provide clear advice and practical support. If your renewal date is coming up, start preparing now. A few smart steps today can protect years of hard work tomorrow.