Posted in News on 30 Sep 2013
As from today the Assigned Risks Pool or ARP has ceased to be, is bereft of life, is no more. And with that the common renewal date that, for many years, precipitated a scramble for cover in the run up to the 1st October deadline.
Firms who have not obtained cover by the deadline will enter the Extended Indemnity Period, a 30 day cover note granted by their existing insurer enabling the firm to continue to practice whilst looking for cover. If the firm is unable to secure cover by the end of the period it will then have to give notice to the SRA and will have a 60 day period in which to cease practising.
The abolition of the common renewal date should provide law firms with a lot more flexibility and has the potential to strengthen their hand when negotiating a new policy. However the positive impact of the measure has been tempered by insurers' loss of faith in the legal services market. Some PII suppliers have gone bump, others have withdrawn from the market for business reasons i.e. premiums may not cover pay outs.
In this week's Gazette Frank Maher, partner for Liverpool law firm Legal Risk said he expected several hundred firms to miss the renewal deadline. Obtaining a policy is now going to be the main priority going into October but without doubt, there will be blood.