A broker claims a new indemnity insurance product can give law firms a more bespoke quote based on their long-term performance
International broking business Marsh says it has agreements with two leading – as yet unnamed – insurers to help small and mid-sized firms manage their PII risks. It claimed this week that analytics and independent performance data can model a law firm’s individual risk profile, producing tailored pricing based on performance and claims histories.
The product is developed to address particular insurance risks such as conveyancing exposes and disciplinary matters, with a liability limit of up to £3m.
Whether the market needs any extra help to reduce the burden of indemnity insurance is open to question: experts suggest there has never been so much choice for small practices, with the collapse of certain insurers a couple of years ago now a distant memory.
But John Kunzler, senior risk adviser for Marsh’s law firms practice, says many small and mid-size frms operate in challenging business conditions.
‘Even those firms that have excellent claims records and robust risk management processes and systems in place can experience some difficulty in securing PI insurance at reasonable terms,’ said Kunzler. ‘By utilising analytics and independent statistical data, Marsh’s new PI solution enables insurers to offer our clients equitable cover based on their long term performance.’
The Marsh offer includes additional defence costs cover for disciplinary matters, dedicated face-to-face risk management support and access to a 24-hour helpline for firms’ compliance officers. Both insurers signed up have at least an A rating from Moody’s, Fitch, and Standard & Poor’s.