The Law Society and broker PYV have today launched a scheme designed to assist law firms which are having difficulty securing professional indemnity insurance (PII) by working to improve their risk profile.
The SafetyNet scheme aims to provide assistance to “distressed” firms, firms seeking to avoid entering the assigned risks pool or those attempting to exit the ARP.
SafetyNet, managed by PYV, will seek to provide such firms with access to insurers which specialise in distressed risks. Those firms which apply will undergo an assessment to determine their suitability for the scheme. Solicitors may also be required to undergo a risk assessment survey which will be conducted by an approved risk assessor prior to their proposal being presented to the insurers.
PYV director Nick Pointon said the primary aim of SafetyNet was to enable firms “to better present their risk profile to the insurance market”. He explained: 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.”
Law Society chief executive Des 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. The scheme is geared towards improving a legal practice’s risk profile for the future. It acts as a long-term solution to members of the profession unable to secure cover. This is, however, a difficult market for solicitors who will need to consider carefully all the implications.”
For further information on the SafetyNet scheme, click here or telephone 0870 264 2060.