With October, 1 renewals period in full flow, the Professional Indemnity claims team provide an insight to trends in 2023.

Our legal services team have successfully navigated the October, 1 renewals and achieved some excellent outcomes. In this article, our Claims Advocacy team highlight some trends and give their insight into the importance of a careful claims presentation.

Property notifications

  • Property-related notifications continue to dominate the legal landscape. These notifications are consistent with long-term trends and economic conditions.
  • Clients are increasingly aware of property risks and are taking proactive measures to mitigate them. This includes careful onboarding, utilising case management tools, close supervision, and specialisation within departments.
  • In the realm of landlord and tenant work, in commercial and residential settings, preparing and responding to notices remains a critical challenge.
  • Firms are exploring risk reduction strategies, including transferring technical notice work to litigation colleagues, due to the precision required in identifying parties and adhering to timelines.

Impact of the Building Safety Act

  • The Building Safety Act (the Act) has been a prominent topic of discussion, particularly for firms involved in transactions potentially affected by the Act, including lease renewals.
  • The Law Society issued a detailed note in July regarding the Act, offering further insights. For more information on the impact of the Building Safety Act, you can refer to the Law Society's note here1.
  • Insurers are closely scrutinising this aspect during renewals. Clients who have identified associated risks and have well-thought-out risk mitigation strategies in place are garnering underwriter confidence.
  • The consensus is that specialists are essential for undertaking and supervising work related to the Act.

Employee inappropriate behaviour claims

  • Despite efforts by firms to curb inappropriate behaviour, allegations, including those of sexual misconduct, continue to surface.
  • These allegations have serious personal and regulatory implications for individuals and pose risks for firms.
  • Securing coverage for costs incurred during regulatory investigations remains a challenge.
  • Vigilance and proactive measures are necessary to address and mitigate these risks effectively.

Presentation of claims

  • A successful claims profile at renewal hinges on proactive year-round management, close collaboration with insurers, and regular claim reviews.
  • It's crucial to consider all acquired practices, especially when successor practice liabilities are assumed, as they impact the firm's claims profile.
  • Interpreting insurers' claim summaries requires caution, as they often present data differently.
  • Co-insurance of the primary layer has increased in recent years, emphasising the importance of proactive financial data management.
  • Collaborating with co-insurers to create a combined claims summary can be beneficial.
  • The primary focus is on presenting an accurate claims summary that reflects costs to insurers.
  • Firms should provide detailed information about significant claims, demonstrating that lessons have been learned from past experiences.

Clients and insurers value firms that are proactive, specialised, and well-prepared to navigate the evolving legal landscape. In conclusion, staying abreast of these trends and implementing best practices contribute to successful renewal outcomes.

Footnote

1. Building Safety Act 2022 and residential conveyancing.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.