Report comment

Anon @ 17:35

The SRA do not understand either the underwriting / pricing of insurance or the basis on which PII operates.

If you set the MT at £500k and there is a claim on the policy of say £1M (quite easily possible in a range of fields) then if the practitioner is a LLP/LTD the owners will probably fold the business and the client will be left with no effective remedy other than tapping up the compensation fund.

In my experience those that complain about high PII costs usually have dysfunctional management systems, poor claims histories, poor financial controls or often a toxic combination of all three.

If you look at your firm and think, yes this applies to us then buy in some risk / compliance consultancy and get a grip: good lawyers do not always (often / ever?) make good managers but a good lawyer will recognise when he / she needs advice (whether from counsel or otherwise).

£5k for a review, report and recommendations may seem like a lot but if it produces a reduction in your PII from 75 of turnover to 1.5% over three years + fewer claims it is the best money you'll ever spend.