As the date for professional indemnity insurance renewal approaches, it is becoming clear that in many cases it will again be the indemnity insurers who have the final say as to which firms live and which die. Anxiety is running high in some quarters as to whether insurers will make an offer and whether that offer will be economically viable.
Where insurance is not obtained on the open market and where a merger or takeover is not possible, options remain extremely limited.
Can a firm avoid becoming a successor practice if it takes over or merges with another firm? The answer is yes, provided that certain steps are taken.