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"....Dreamvar loss could price out small firms .."

Apart from the sensational headline, why?

They just form their own proper Professional Body with proper PII the Insurers running it being challenge-able (and their unliateral decision to close a firm being appeal-able by way of short quick access to the Courts or a proper internal Ombudsman), and which body supports them rather than the few large firms and if necessary re-writes the retainers (to limit exposure) and/or encourages proper legislation to look after their interests.

Scruff.