The Professional Indemnity renewals season is fast approaching again and, if commentary from within the industry is to be believed, then this year could be even more difficult than the last, particularly for smaller firms.
With capacity in the market reduced, and further increases in numbers of claims seeming ever more likely, it is those smaller firms with greater exposure to risk that will find their renewal process most painful. There is an interesting piece on this on the Gazette website at the moment.
But, as always, we are concerned with what this actually means in practical terms for this (extremely large) chunk of the market... What should managers be doing?
Undoubtedly, an early conversation with the broker is essential. Many firms didn’t find cover last year, simply because they left it to the last minute (although others applied early and still struggled). Either way, this will give the chance to shop around where possible. And shop around you should – well managed firms will still be able to gain favourable deals, if they apply in good time.
Application forms should be filled out as completely, and diligently, as possible – we are always amazed by the number of sloppily filled out forms, which certainly won’t help your case!
Check that Lexcel accreditation is up to date, and that you comply fully with any requirements – as this will make your risk profile considerably more attractive, especially for firms with significant exposure to property work.
None of this sounds especially difficult, and it isn’t. There are firms out there that will struggle to get a good quote in any event, but there are others for whom doing the simple things well and early could mean all the difference. This is worth bearing in mind.
The real experts in this field are Legal Risk, and I would encourage anyone worried about their renewal to visit their website.