A law firm has developed an innovative new structure that it believes could help small firms and sole practitioners obtain professional indemnity insurance (PII).

Virtual firm Scott-Moncrieff Harbour & Sinclair (Scomo) will join up with a small number of other firms under one ‘umbrella LLP’ that will have the sophisticated risk management processes sought by insurers.

The LLP will provide risk management services to the participating sole practitioners and firms. It will employ experts in accountancy, practice management and regulation.

Scomo founder Lucy Scott-Moncrieff said: ‘Insurers are not bothered about how an organisation is structured, but are very interested in how risk is managed in the firm. Our umbrella LLP scheme focuses on minimising the risk of insurance claims, but in the process also reduces the risk of complaints by clients and breaches of the SRA code of conduct.

‘We are starting small with our umbrella, and expect to join up with just a few firms this year. However, there is nothing to stop other firms setting up their own umbrellas.’

Jocelyn Moule, professional regulation partner at Bristol firm Veale Wasbrough Vizards, worked with Scomo to develop the scheme. Moule said: ‘Scomo is a two-partner virtual firm with 60 fee-earners scattered from Manchester to Bristol. It has had to develop excellent compliance and internal controls to prosper, and is now lending this expertise to help firms struggling to get PII cover.’