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Daily Insurance Industry News
Thursday 18th of January 2018
September 29, 2010

Law Society launches SafetyNet PII scheme

by Gill Montia

Story link: Law Society launches SafetyNet PII scheme

The Law Society has launched a new scheme to help law firms struggling to secure professional indemnity insurance (PII) renewal terms.

SafetyNet will provide assistance to “distressed” firms, or firms seeking to avoid entering the Society’s assigned risks pool (ARP) or attempting to exit the ARP.

The scheme, which is managed by Lloyd’s broker PYV Limited, will provide such firms with access to insurers that specialise in distressed risks.

Firms that apply will undergo an assessment prior to their proposal being presented to the insurers.

Commenting on the scheme, PYV director, Nick Pointon, says: “The primary aim of SafetyNet is to support those firms that have been unable to secure PII cover or are seeking to exit the ARP by enabling them to better present their risk profile to the insurance market.”

He adds: “The scheme is designed to deliver a positive change to firms through effective risk management, and by so doing enable them to not only obtain cover now but also enhance their risk profile moving forward so they are in a much stronger position to secure cover at future renewals.”

The cost of insuring the legal profession against professional negligence claims has soared in recent years because negligence claims tend to increase during times of economic uncertainty.

In addition, legal firms focused on real estate business have been singled out for a specific loading because if mortgage fraud has occurred, lenders may be inclined to sue.

 

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