Brunel tendered for a new Recruitment Consultant client, and identified that their present policy did not have the correct cover – particularly that they did not have cover for around 100 temporary placements performed.
We met with the client to educate them on professional indemnity insurance, how it works and how it affects them if incorrectly placed.
The client’s board were grateful we plugged the gaps and reduced their liability.
Can brokers add value on top of SRA minimum terms and solicitor’s own capability?
A Solicitor firm suffered a £2m loss from its client account due to fraud.
The insurers failed to indemnify the claim, citing concerns with continuing exposure to loss and potential liability on the part of the solicitor’s bank. The solicitor firm was threatened with intervention by the SRA. The solicitor firm’s client account was frozen by the SRA and its ability to transact business was severely compromised as a result. The solicitor firm was brought to the brink of collapse.
Brunel employed various tactics on behalf of the firm including:
- Representations with the insurers based on the SRA minimum terms and Participating Insurers agreement
- Liaison with Law Society and SRA
- Liaison with a number of other Participating Insurers regarding their reactions to similar situations/interpretation of cover under SRA minimum terms
- Liaison with a leading market commentator and risk manager regarding the situation
- Daily consultation with the solicitor firm in relation to various statements & proposals made by insurer, proposed recovery action with client account bank, and the lateral efforts.
- Calling for adjudication between the solicitor firm and Participating Insurer
The insurers paid the claim.
