The 1st October 2020 solicitors’ professional indemnity insurance (PII) renewal season saw significant increases in premium for many law firms and we are concerned that the upward trend will continue into 2021. As the next major renewal date of 1st April 2021 approaches, it is likely that many legal practices will be facing financial challenges as a result of the pandemic and unfortunately, an increase in their PII costs is likely to be among them.
We encourage firms to start considering this issue, engaging in open dialogue and taking advice now. It is important to understand the options in the unfortunate event that your firm does not have a viable future. The more matters are allowed to drift and the more extreme the position becomes, then the more difficult it will be to find a satisfactory way forward and the greater the risk of a chaotic closure that is not in the interests of the firm or their clients.
At Howden, we have produced an article discussing possible actions, options, and alternatives for those firms that are concerned about what lies ahead - read the full article. We cover a range of issues including:
a) Taking professional advice
b) Changing your business plan
c) Reducing or controlling overheads, including PII spend
d) Orderly closure
f) Switching Regulator
g) Alternative practice structures.
We want to emphasise the importance of addressing issues early and taking advice. Do not leave it too late. There are business professionals with a wealth of experience in assisting law firms in this situation. As far as the PII implications are concerned, the team at Howden have the knowledge and expertise to assist you to navigate your way through the relevant issues.
Neil Pointon works in the Legal Professions team at Howden Insurance Brokers Limited
Tel : 07967 099508
Email : firstname.lastname@example.org