If your law firm has still not received a quotation from your current insurer, then it’s time to act!
After the high profile exit of Libra Managers, a Lloyd’s backed Managing General Agent (MGA), last month from the solicitor’s professional indemnity insurance market, questions are being asked as to the sustainability of the current professional indemnity market for law firms. Lloyd’s of London have begun an in depth review into its appetite for risk following years of large losses. This, in turn, has led to some Lloyd’s backed MGA’s struggling to renew their books at the rates they were providing at last renewal, or even struggling to find full capacity in order to offer any renewal quotations at all.
For some this may feel like déjà vu, with the exit of unrated insurers in the past number of years still fresh in the mind of most. Zarina Lawley, Head of solicitors practice at Miller insurance Services LLP, comments, “We have seen a number of firms coming to us who have not received renewal terms from their existing providers, which for them is a worrying prospect. The 1st October renewal deadline in now just a few weeks away.” Lawley adds, “Those firms shouldn’t panic, but they need to act quickly to try and avoid moving into the Extended Indemnity Period.”
The advice for affected law firms is to contact their broker immediately for an update. Alternatively, they should seek a second opinion from another broker who is not reliant on any one insurer. A broker with broad market access will ensure that your firm is not disadvantaged by paying higher premiums because you have not had the opportunity to compare renewal terms.
If your firm has not received renewal terms, simply send a copy of your existing proposal form to firstname.lastname@example.org or call 020 7031 2741, where our team of skilled advisers will be able to guide you through the process of securing cover before the 1st October deadline.
If you are insured with a Lloyd’s backed MGA or not sure if your insurer is an MGA, please call us on 020 7031 2741 for advice.