No time to waste

After months of warning there remains one clear message to those law firms which have not yet arranged indemnity insurance: do it now.

Cover under the old Solicitors Indemnity Fund expires on 1 September.

The merits of the abolition of the mutual fund are now beyond useful discussion.

The reality is that indemnity insurance for solicitors has been thrown open to the market because that is what the profession wanted.

And as we report, there are bound to be teething problems and some degree of confusion as solicitors and the insurance industry adapt to the new arrangement.

What should law firms bear in mind? Firstly, shop around.

One of the benefits of the open market is choice and it is worth assessing what different insurers and brokers have to offer.Also, negotiate a premium rate and do not be intimidated into accepting the first quote.

Insurance companies are finding their feet; anecdotal evidence suggests many are prepared to look again at a firm's circumstances after providing the initial rate.

Finally, those firms that fear they might fall into the assigned risk pool should apply now instead of going in by default.

An application in advance will give the firm an opportunity to negotiate terms.

Going in by default will mean plunging in at the deep end and undoubtedly paying a higher premium.