Law firms are beginning to learn – in some cases, the hard way – that their insurance policy is not part of their risk management, but the last port in a storm, as the latest Legal Risk survey of the top 100 UK law firms reveals.
Firms are perhaps recognising, too, that although insurance premiums have been low for years, that may not continue indefinitely. If they were unable to obtain cover, they would end up in the ‘Assigned Risks’ pool with both reputational consequences and enormous premiums: for example, just the basic compulsory £2m cover would cost more than £1.4m for a firm with £10m fee income.
