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SRA APPLICATION FOR NEW LAW FIRMS - HOW TO MAKE THE PROCESS RUN SMOOTHLY

Charles Hawtin launches our free guide to help you understand the SRA application process

 

Traditionally the need to provide a quotation for Professional Indemnity insurance (PII) to new law firms has been seen as an unwanted distraction by many insurers and their brokers. Why invest time and effort on business that offers no immediate reward?

At Chancery Pii we do things differently. We understand that the SRA insist on a PII quote as part of the application and believe that it makes good business sense to go to some effort help new law firms obtain a competitive quotation to send through with their SRA application. Against this background we are pleased to launch our guide for new law firms which aims to help these firms navigate the SRA authorisation process and to provide in-depth advice about how to achieve a competitive PII quote.

To request your FREE copy click here
What makes a good PII application?

When making an application for a PII quotation, there are four elements to your presentation that we will expect to see before deciding whether to quote and at what level. These are:

1. The proposal form

This should be completed from the perspective of what you expect to have in place on day one of trading. The Chancery Pii proposal form is online and as a new law firm we will need you to complete the form and to upload the following documents to the form:

2. Your business plan

You will need to write a good, relevant and believable business plan. In our new guide you will find a useful template which will give you an insight into what we want to see included. We prefer niche firms, to firms looking to work in too many areas of the law but we will consider all firms. The key is to convince us that your firm will survive the tricky opening period and be sustainable in the long-term. The business plan should fit with all the information you have given on the proposal form and the cash flow forecast.

3. Cash flow forecast

An example of a cash flow forecast is included in our new guide and the reason that we ask to see this is so that we can be confident that there is sufficient financial backing to enable your business to survive and then thrive. Also worth bearing in mind is that, if a business fails, we are liable to cover the firm in run-off for six years even if we are not paid the run-off premium. Similarly, we are liable for any excesses that are not paid. So it is in both your financial interests and our own that the firm is financially sound.

4. A comprehensive CV for all principals

Being frank, we are not interested that you captained the hockey team or were the opening bat for Old Dreamers CC but we are interested in all of your relevant legal and business experience. We will generally be looking for at least five years PQE and any time you have been involved in the commercial aspects of an enterprise as well as all your learning and law based knowledge and experience.

So there you have it, the four key elements to successfully getting your first PII quote. Remember you are applying for cover for negligent acts and errors or omissions – so it’s definitely worth taking care and making sure there aren’t any in your application!

 To request your FREE copy click here

 

Charles Hawtin

020 7481 0613

charles.hawtin@chancerypii.co.uk