Michael Morgan
Head of Professional Liability
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United Kingdom
Regardless of size and breadth of practice, all law firms operate in challenging and increasingly risky business conditions. The work of legal professionals involves a great deal of responsibility, and with it often comes a high degree of exposure.
Our team is composed of specialists with legal industry experience, and expertise designing and implementing insurance coverage, including professional indemnity, for law firms. Whatever your firm practices, and however large or small it is, we can help you meet your risk management challenges. We provide the highest possible standard of service and maintain quality at every point of contact. We excel in identifying and helping your firm understand the specific risks of your practice, while working together toward a shared goal of mitigating exposure in a dynamic and adaptable manner.
Law firms around the world share some common risks, including professional indemnity, human resource challenges, cybersecurity, and property risk.
Across these enterprise risks, our key services include:
We discuss your risks and the best insurance solutions to protect your firm, including key objectives and desired outcomes. We agree the insurer selection criteria to drive negotiations.
Our vast pool of global data on law firms (including claims) enables us to use an analytical approach to negotiating terms.
We negotiate directly with a wide range of insurers who underwrite solicitor’s professional indemnity insurance, and other covers, ensuring we are in a strong position to achieve your goals.
All our clients have a dedicated client team to provide support with day-to-day requirements and provide a full consultative service throughout the year.
Our specialist REM team provides updates on topical issues in our popular Risk Dimensions newsletter. If there is an area of concern, Marsh can deliver targeted analysis and training, matching your firm’s requirements, with the team’s unique data driven knowledge and insights.
Our claims advocacy and management team consists of qualified lawyers and technical claims experts who provide advice and support regarding overall claims strategy and individual claims management.
Availability varies by location. Please consult with a Marsh advisor for support in your region. View all our services here.
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Professional indemnity cover should be purchased by anyone providing professional advice or services, from traditional professions such as lawyers and architects, to more recently emerged professions like IT and management consultants. Sometimes it will be a requirement to have professional indemnity insurance. This could be the case where you work in a regulated profession, or a minimum level of cover could be stipulated in a contract, for example joint contracts tribunal (JCT) construction contracts.
This depends on a number of factors, including the type of work you do, the risk that someone will take legal action against you, the potential size of a claim, and any requirements stipulated by a contract or professional body. Three times annual fee income is a good starting point, but also considers the worst case scenario and the likelihood of it happening.
You also need to think about how long you need cover for. Professional indemnity insurance is written on a 'claims made' basis, so while it is in force it will cover you for claims made during the policy period rather than just covering the services you provide in that period. As claims can occur long after you provide the service, you should keep cover in place for several years: typically six, although some contracts specify up to twelve.
It is essential to disclose all material information otherwise claims could be declined. Buyers must complete a proposal form, which becomes part of the policy contract. These forms are designed to capture all the relevant information but, if you feel an important part of your professional service has not been disclosed, speak to your insurer or broker. Whoever is completing the form should check with all senior executives that what is on the form is correct to their knowledge.
Consideration should also be given to retroactive cover. When you take out PI cover for the first time you may be able to buy retroactive cover to give protection for future claims that arise from professional services performed prior to the inception of your first policy. If organisations are established and have not bought cover before, they must consider existing exposures and whether they need retroactive cover back to when they started trading. There is also a claims disclosure clause that must be carefully observed. The company must disclose any potential claims, or circumstances that may give rise to a claim, to insurers within a specified timeframe. In some policies this is worded as 'immediately'. In other policies the notification requirement is 'as soon as is practicable', which allows the policyholder a far higher degree of latitude.
Getting it wrong can be hugely expensive. Failing to disclose material information could mean a claim is declined. Likewise, if you do not take out sufficient cover you could find yourself having to meet the additional costs. Organizations also need to think about the damage to their reputation when a claim is made. They need to establish a plan as to how to minimize the damage, and put in place protocols with the insurer to ensure claims are handled in a timely and efficient manner.
Head of Professional Liability
United Kingdom
United Kingdom
Lawyers Practice Group, Marsh Specialty
United Kingdom
Head of UK Professions, Marsh Specialty
United Kingdom