Society launches PII help scheme

Society launches PII help scheme

The Law Society has launched a new scheme to assist law firms who are experiencing difficulty securing professional indemnity insurance ( PII ) renewal terms.

The SafetyNet scheme will provide assistance to ‘distressed’ firms, or firms seeking to avoid entering the assigned risks pool (ARP) or attempting to exit the ARP, in obtaining professional indemnity cover from the insurance market.

SafetyNet, managed by Lloyd’s broker PYV Limited, will seek to provide such firms with access to insurers which specialise in distressed risks. Those firms which apply will undergo an assessment to determine their suitability for the scheme. Solicitors may also be required to undergo a risk assessment survey, which will be conducted by an approved risk assessor prior to their proposal being presented to the insurers.

Commenting on the scheme, Nick Pointon, Director of PYV Limited, said:

‘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. 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.’

Law Society chief executive Desmond Hudson said:

‘We are committed to doing all we can to offer an opportunity to distressed legal practices to escape the ARP or avoid it. This is a positive development for those unable to obtain professional indemnity insurance cover.

‘The scheme is geared towards improving a legal practice’s risk profile for the future. It acts as a long term solution to members of the profession unable to secure cover. This is, however, a difficult market for solicitors who will need to consider carefully all the implications.’

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