After the cost of staff and premises, professional indemnity insurance is often the third most expensive outgoing that a law firm has to pay. This, compounded by the fact that professional indemnity premiums are continuing to rise, means that practices are having to find ways to ensure they get the best rate possible.
One of the main areas that insurers consider when deciding whether to cover a practice is its understanding and implementation of risk management procedures. Insurers know that good procedures go a long way to preventing some of the most common causes of notifications made against a solicitor’s professional indemnity cover. Therefore, although a practice can never eliminate all causes of negligence claims, it is imperative that law firms make as much effort as possible to minimise their risk.
