The Law Society’s professional indemnity insurance helpline is braced for a surge in calls from firms looking to secure cover before the 1 October renewal deadline.
To assist those firms having difficulty securing renewal terms, the Law Society today launched a SafetyNet scheme.
The scheme will provide assistance to ‘distressed’ firms, that is those firms seeking to avoid entering the assigned risks pool (ARP) or attempting to exit it, in obtaining professional indemnity cover from the insurance market.
SafetyNet, managed by Lloyd’s broker PYV, will seek to provide such firms with access to insurers that specialise in distressed risks.
Firms that apply will undergo an assessment to determine their suitability for the scheme, and solicitors may also be required to undergo a risk assessment survey prior to their proposal being presented to the insurers.
Law Society chief executive Desmond Hudson said: ‘The PII market this year has, as expected, proved challenging for some legal practices.’
But he said there will still be an opportunity for firms to find PII cover after 1 October.
Commenting on the SafetyNet scheme, Hudson said: ‘We are committed to doing all we can to offer an opportunity to distressed legal practices to escape the ARP or avoid it. This is a positive development for those unable to obtain professional indemnity insurance cover.’
PYV director Nick Pointon said: ‘The scheme is designed to deliver a positive change to firms through effective risk management, and by so doing enable them to not only obtain cover now, but also enhance their risk profile moving forward, so they are in a much stronger position to secure cover at future renewals.’
The PII helpline can be contacted on 020 7320 9545.
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