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The solicitors' professional indemnity market has seen a welcome return to stable and secure rated markets after a period of volatility.  Reputable insurers are keen on firms with a strong track record of stable financial performance and proven risk management credentials.  This poses problems for newer firms that do not necessarily have a significant track-record to evidence to insurers.

Strart-up practices require to have their professional indemnity insurance in place before they start practicing.  So what can such practices do to obtain the necessary insurance timeously and cost-effectively?

Two key elements are a strong business plan, and a comprehensive and demonstrable risk management strategy.

Your business plan provides insurance underwriters with an invaluable insight into your business strategy, and the likely growth of the business.  It should contain an overview of the business, its structure and target market(s), and financial information, particulatrly funding proposals for at least a three year period.

Risk Management is similarly important.  In the past, some small firms have started up without any obvious risk controls in place.  Risk controls do not have to be complex to be effective.  More and more start-up firms are turning to cloud solutions to provide affordable state-of-the-art management information, document and diary management, and practice management systems.  This is just one element however, and insurers are always keen to see evidence of how effective supervision will be provided.

Lockton recognise that start-up and recently established practices require specific guidance from their broker.  Also, many of the typical broker proposal forms ask questions that simply don't apply to these new practices.   We have produced a dedicated Start-Up Practice Proposal Form for you to use - and are happy to talk you through the process.  You can download this proposal form using the link below.

Our Risk Management assistance is also second-to-none.

You can read the full article on the Solicitor's Journal website, or speak to us for more information about how we can help you with your new practice.

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