The Law Society recently revealed their intentions to unveil a new facility designed to aid law firms currently facing an uphill struggle to renew their professional indemnity cover.
The new Safety Net facility, which is to be managed by PYV, a Lloyds broker, is designed to assist those law firms who are striving to avoid having to resort to the Assigned Risks Pool due to being unable to secure professional liability insurance or those firms who wish to leave the ARP by obtaining separate cover elsewhere.
Under the new scheme, law firms will be assessed by PYV in order to determine their risk profile, which will aid them in their efforts to procure business liability insurance appropriate for their needs.
PYV’s director, Nick Pointon, commented on the new facility, stating that Safety Net’s primary objective was to offer support to firms that either have not been able to secure adequate professional indemnity cover or have expressed a desire to leave the ARP by working with the firm to present their risk profile in a more positive manner, making them more attractive in regards to the insurance market.
The new facility, Mr Pointon continued, will focus on managing risk effectively, enabling firms to not only not have to avail themselves of the ARP but to manage their risk profile going forward so as to leave them in a stronger bargaining position at renewals in the future.
Desmond Hudson, chief executive of the Law Society, also commented, stating that the Law Society has committed to aiding law firms to either avoid the ARP or escape it if they currently receive cover from the risk pool.
Mr Hudson added that while the market is currently difficult, which may result in any firms needing to carefully consider all the possible implications of availing themselves of Safety Net, the scheme is designed to act as a long term solution, as it is geared towards the improvement of risk profiles going forward.