A fundamental of insurance is that “the premiums of the many, pay for the claims of the few.” This means that all firms can and will be impacted by claims experienced by their professional peers.
This is not in the same way that you would experience under a mutual, but it will have an overall bearing upon the premium charged for your professional insurances by insurers.
It is important to appreciate that Solicitors PII is a difficult class of insurance, some may even describe as a volatile due to the breath of coverage afforded under the SRA's Solicitors Minimum Terms.
The main body of the SRA Minimum Terms and Conditions policy is identical across all participating insurers, so what makes them different?
Insurers can only differentiate their offering on a small number of factors; these include their run off rate calculation, their security rating, claims handling function, and the premium they are willing to charge to deploy their capital along with their general appetite for business e.g. the size and profile of practice that they are willing to write. Finally, any value added services that they may provide or policy enhancements that they make available.
Depending on your unique circumstances, these differences may have more weight in your
consideration of who is the appropriate insurer for your practice, but no doubt whatever your circumstance the premium charged will have some bearing on your decision.
Download our guide on the right hand side to learn how and what factors insurers take into consideration when insuring your business.