Solicitors Insurance

Due Diligence

A Typical Solicitors’ Practice Insurance Programme

Professional Indemnity

Rates have peaked for most solicitors’ PI, or at least no major rate-increases are expected. There are two post-Covid industry factors to consider – Increased Conveyancing fee-income during the Covid property boom which are now unrepresentative, in addition to recent concern over activities undertaken whilst working from home which had the potential for mistakes and lack of oversight which are now coming to light.

We have access to most solicitors’ PI markets – it’s always worth seeking alternatives given the premiums involved.

Office Insurance

• Buildings or Tenants’ Improvements – is your reinstatement sum insured adequate given current inflation? Avoid under-insurance at all costs and proportional settlement.
• General office contents – furniture, equipment, artwork etc – reinstatement sums insured adequate? Full All Risks coverage?
• Terrorism included?
• Loss of Revenue vs Increased Cost of Working – Whilst many firms can now operate from home there’s still costs and inconvenience, especially if more long term and alternative premises have to be sought – premiums are relatively inexpensive for very wide coverage.
• Employers’ Liability – is the standard £10m enough, it’s often not when one person’s compensation claim can be £5m-£7m alone – with employees often all on one site, and many solicitors’ staff earning good salaries, £25m is often a consideration. It’s also worth ensuring that Working from Home is fully catered for.
• Public Liability – for visitors to your offices and your teams visiting clients/sites, is your Public Liability cover’s Limit? £5m is the standard nowadays but if staff visit firms with large premises, numerous staff, production facilities etc., £10m or more should be the norm. Don’t forget your PL also covers Tenant’s Liability if you rent your own premises.

Computer Insurance

Given the reliance you’ll have on IT, insuring your computers within your office policy in the same way as furniture, makes no sense.

• A separate computer policy provides far more comprehensive coverage, fewer restrictions, often with a lower excess, and a more competitive premium.
• Cover caters for loss or damage to static IT including servers and networked copiers, laptops/portables/smart phones worldwide etc. It needs to be insured whilst Working from Home, which many policies do not cater for.
• But critically… cover needs to extend to include the costs to Reinstate Data & the Increased Costs of Working.

Cyber Liability insurance

No longer a ‘nice to have’ policy, it’s now most definitely a ‘must have’ part of the solicitors’ insurance programme.

Hackers won’t necessarily target you but if there’s an opening in your IT system’ security, they’ll find it – which will lead to disruption, additional costs to bring your system back, not to mention the very prevalent ransomware demands etc.

GDPR breaches remain a serious concern, whether as data or as paper files, so coverage is essential.

Website, email and social media liability can lead to transmission of viruses to third-parties, not to mention the risks of IP breaches and defamation issues.

Infiltration of your system via emails from your customers can cause just as much damage to your systems and prevent your entire company from operating.

Cover’s wide and extends into Loss of Revenue, PR costs etc.

Crime and Cyber Crime – internal and external fraud relating to ‘own’ funds

Internal and external fraud has always been an issue – do you have cover for your own funds etc?  Note – PI policies tend to pick-up ‘client fund’ frauds.

Management Liability (Partners’/Directors’ exposures)

Directors’ & Officers’ Liability (which can cater for Partners’ Liability) is a definite ‘should have’ in today’s increasingly litigious world.

Travel

Caters for UK (and foreign) business trips – where expenses cannot be recovered due to an incident outside your control – cancelled travel, overnights stays and the like.

Coverage for Directors’/Partners’ personal worldwide travel is also included, including cover for spouses/partners and children under 18 living at home whether accompanying or independent travel – without any P11D benefit in kind.

With zero excess and no pre-medical underwriting (provided you are deemed fit to travel) this contract offers high limits (Unlimited medical and £10,000 cancellation for example per person) – it’s a ‘no brainer’ for directors/partners.