How do you build a new insurance practice into a firm that never had one before? Bring the personality and culture that pre-merger BLM once had, says the practice head of HCR Law.
Legacy firm BLM merged with Clyde & Co in 2022.
Head of insurance and risk, Jonathan Edwards joined the firm back in 2020, when the firm lacked any focus on the insurance sector. Edwards was previously at BLM for over 25 years, before moving to Clyde & Co in 2018.
“There is not a lot you can do at Clyde & Co, it runs itself,” Edwards noted, adding that he questioned what he could actually do at HCR Law, given it had no name in the market.
But then he met with the partners, and it all clicked, “it is the type of place that wants people to come in and succeed”, adding “they are the most supportive partners I have ever met.”
The practice works primarily for the insurers, focusing on regulation, disputes, risk management and crisis management. The team has grown to 12 people including partner Leanne Conisbee, who also spent time at BLM.
“What we are hearing from the insurers is for a law firm to come back to the market with customer service at its heart,” explained Conisbee.
She noted that BLM used to offer “the lot” to its insurance clients, adding that the “market is crying out” for a different quality that is not “process heavy”.
She added, if clients are not updated and are forced to reach out for updates, that “is a failure from those law firms”.
The practice is busy, to the extent that the firm has enlisted junior barristers from chamber sets it works closely with to help with the workload.
“It is a much better way of dealing with the workload,” explained Edwards, adding, “the quality is ensured”.
Over 100 law firms faced insurance woes in 2024
Obtaining professional indemnity insurance (PII) is still a recurring problem for some law firms, as exclusive data shared with City AM reveals 21 law firms were forced to close this year.
PII is a type of insurance to cover law firms in the event of a claim being brought against them, all regulated law firms are required to have a policy.
According to Hazlewoods, 21 UK law firms were forced to close this year (year end June 30 2024) due to their inability to obtain PII coverage.
While the report noted 102 law firms contacted the Solicitors Regulation Authority (SRA) last year to notify them that they were having serious difficulties in finding PII coverage.
This data comes as October continues to be the most significant month for the renewal of PII.
The problem is the cost, says Hazlewoods, as policies are one of the top annual expenses for law firms.
The insurance market is currently in what is known as a ‘hard market’, which results in an increase in rates due to a lack of appetite for insurers to quote on new business.
However, Howden found that 66 per cent of its law firm clients saw a decrease in premiums in the key October insurance renewal period in 2023.
Hazlewoods stated that law firms that are heavily focused on residential property conveyancing are seen as higher-risk by insurers. As a result, are amongst those most at risk of being unable to obtain affordable coverage.
Ian Johnson, partner at Hazlewoods said: “The number of law firms closing due to the inability to source affordable PII cover is still a big problem. Insurance costs have been a worry for law firms ever since the global financial crisis.”