Spring PII Renewals and how to minimise your premium spend
14 December 2020
The law society are urging firms to act now in a rising Insurance market with limited capacity. Here are the things that are relevant;
Take Expert Advice
They urge firms to seek independent advice on the health of the business, it’s ability to pay premiums and viability of trading forward. Advantage are one of the few firms who are able to collect a range of positive features relating to solicitor practices to help minimise cost.
We have a quality and compliance dashboard that enables Insurers to see at a glance which firms are performing well and which are well managed. This is crucial – merely sending in a proposal will mean that a firm will get “the market rate”.
Many firms are required to provide personal guarantees by Insurers to protect the possibility that they may be unable to pay their excess or other liabilities relating to their Insurance contract. It is sometimes possible to Insure these liabilities elsewhere, or find a work around to avoid them attaching in the first place.
Whole market broker
The law society urges firms to engage with brokers who are able to help cover the entire range of Insurers, to ensure that they have sought the best possible terms. We are able to help firms to tender their Insurance programmes and point them in the right direction.
Closure, merger, sale and successor practice rules
Sadly some firms will be faced with the difficult task of having to close or merge it’s client bank into another practice. This requires planning, thought and a structured process, which should take place as early as possible so that firms have the widest possible choices, and are not forced to lose their entire wip and locked in value in the business.
Striking a deal with a successor practice can provide a solution, if the cultures and standards of both firms are similar – culture in particular is crucial. Run off costs are often significant and multiples of 350% of expiring premium are in evidence. There are ways of offsetting these premiums in the negotiation process of getting together with another firm, and advice is available.
For information and advice get in touch with the team at Advantage Consulting.
For more information on how Advantage365 can help your law firm, please call us on 0121 212 6580 or request a free call-back using our contact form to get free initial advice. You can also access a wealth of free business information for lawyers by visiting our digital Resource Centre and view our free Business Factsheets .
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