While the legal sector looks to move on from the pandemic, firms are never short on challenges. This year’s Law Society Business Recovery Survey and Report revealed Professional Indemnity Insurance (PII) as one of main concerns to Practitioners due to unprecedented rise in costs, difficulty in securing a quote and a burdensome renewal processes.

Renewal challenges

Small law firms are used to annual hikes in PII premiums and are tuned to the challenges these bring. PII also presented yet more problems for small law as firms reported that renewal processes have become a burden. Practitioners from a variety of backgrounds said the process behind PII renewals is time-consuming and overly complicated. 

Firms must now provide deeper insights into how they run their business to satisfy insurance providers. Increasingly the renewal is increasingly complex and the form to be completed will take more than one day to complete.

What firms can do?

Ultimately, firms need to be strategic about how they approach renewals. Today’s PII market requires planning in the run-up to renewals and thorough discussions with underwriters and brokers to keep the process under control. Practitioners will also have to spend money to save money. While investing in new technology to meet compliance needs can be costly, it can keep premiums down and ensure your firm is more secure.

Top tips to prepare for PII renewal

1. Start early: Get submissions to your broker in plenty of time. Allowing time to discuss any queries and for insurers to reflect will always play to your advantage.
2. Spend time on your application: Leave no stone unturned as gaps or incomplete information could see your proposal rejected. You can add value to your pitch by including relevant information that paints a more vivid picture and is easily digestible, such as process diagrams and documentation.
3. Show how you learn: Demonstrate how process is adapted in the light of experience. Have you developed an overview on the risk management processes at your firm and how the frameworks limit risk? For example, when a claim occurs, what is done to prevent recurrence? If a trend is detected, what is done to tackle it?
4. Pandemic performance: This year insurers want to dig below the surface. They want to know how you have operated through the pandemic, in detail. Typically, renewal was about operational and financial stability issues, it is the bigger picture that now needs to be tackled, such as employee wellbeing, staff supervision and training.

Join us at this week’s additional Information Session

Making a PII application - Key factors - O' Leary Insurances (22 October) Register Online

Finbarr Jeffers from O’ Leary Insurances will discuss The PII Insurance market.

Find out more

This article was written by Small Practice Business Executive Justin Purcell. 

• See more resources and insight to manage your firm in the Small Practice Business Hub
• Access PII renewal resources