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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When deciding on professional indemnity insurance for solicitors, law firms tend to fall into pitfalls, exposing themselves to losses in the future. This vital insurance protects from a client’s claim based on neglect, mistake, inaccuracy, and misconduct. Despite its critical importance, many companies commit errors that could have been avoided. To ensure that you preserve your practice and have peace of mind, we are explaining the top mistakes to avoid.
Here are some of the most frequent errors law firms make when selecting professional cover -
It is always a common mistake to select the policy because of the lower premium. Price is important; however, without examining your policy terms, such as coverage limits, exclusions, deductibles, and retroactive date, you could be underinsured at the time of need. It is a rather risky move to choose a professional indemnity insurance policy for solicitors based on price.
Even the most wide-ranging policy can have loopholes. Exclusions such as fraud, disciplinary proceedings, dishonesty, or employment claims can leave you exposed. It is critical to carefully read all the provisions in order to avoid risky shocks.
It is easy to neglect the sufficiency of limits in relation to exposure to risks. SRA-approved policies typically stipulate a minimum cover of between 2 million and 3 million, depending on how the firm is set up. Unless you have adequate coverage, one big claim can put your company in financial distress.
Most of such claims arise years later, after the actual work has been done. If your policy does not contain retroactive cover (covering previous acts) or run-off cover (when you cease practice), then your firm could be left unprotected.
When selecting professional indemnity insurance coverage for solicitors, you should not underestimate the service quality of the insurer. Reputation, financial strength, and the claims handling process may be the only difference between a stressful claim and a happy one.
When your firm evolves--perhaps due to a merger, the establishment of a new practice area, or the staffing change--you become exposed to new areas as well. However, a large number of firms fail to update their professional indemnity insurance for solicitors accordingly. Portfolio analysis with reviews can assist you in making adjustments and preventing gaps in coverage.
In England and Wales, the requirements are SRA approval. It is important to remember to select a professional indemnity insurance for solicitors that has signed up to the Qualifying Insurers Agreement with the SRA. A failure to comply with this may even lead to the closure of your firm.
Professional indemnity insurance extends beyond financial cover; it also acts as a motivator to better risk management. Practices such as clean operations, transparency, and others can make premiums cheaper and cut claims exposure.
More than 90 per cent of companies employ the services of brokers to ensure cover- bypassing one risk: missing market intelligence, good rates and customised advice. A knowledgeable broker can also clarify difficult terminologies, point out unclear inclusions, and match your firm and carriers that have vast experience in underwriting solicitor-specific risks. Without such assistance, the law firms might have to settle for inappropriate insurance, and the cost of their insurance plan might also be higher than it should be.
Professional indemnity insurance for solicitors markets are cyclical. The rate and the severity of claims have been rising rapidly, which has strained the premiums. But as the market turns, counterparty-friendly terms are more obtainable with fast purchasing.
Don't risk the protection of your firm when getting professional indemnity insurance for solicitors. Legal Ex Plus has extensive experience in delivering custom cover that reflects the firm rather than using a one-size-fits-all approach more typical of larger firms. We provide comprehensive access to SRA-qualifying insurers, risk management counsel, and professional advice with the terms of the policy, to ensure you are not just insured but are truly covered. Book your quote and expert consultation with us today.
The selection of professional indemnity insurance for solicitors is much more than choosing the lowest insurance premium. It requires close consideration of policy conditions, coverage levels, provider reliability, and compliance with regulations. Avoiding these typical pitfalls will not only keep your firm out of financial trouble, but it will also increase confidence in your firm among your clients and regulators.
If you need help navigating your next renewal or policy review, let Legal Ex Plus find your way to brighter, safer cover, unique to your practice and changing risks.