The Professional Indemnity renewals season is fast approaching again and, if commentary from within the industry is to be believed, then this year could be even more difficult than the last, particularly for smaller firms.
With capacity in the market reduced, and further increases in numbers of claims seeming ever more likely, it is those smaller firms with greater exposure to risk that will find their renewal process most painful. There is an interesting piece on this on the Gazette website at the moment.
But, as always, we are concerned with what this actually means in practical terms for this (extremely large) chunk of the market... What should managers be doing?
Undoubtedly, an early conversation with the broker is essential. Many firms didn’t find cover last year, simply because they left it to the last minute (although others applied early and still struggled). Either way, this will give the chance to shop around where possible. And shop around you should – well managed firms will still be able to gain favourable deals, if they apply in good time.
Application forms should be filled out as completely, and diligently, as possible – we are always amazed by the number of sloppily filled out forms, which certainly won’t help your case!
Check that Lexcel accreditation is up to date, and that you comply fully with any requirements – as this will make your risk profile considerably more attractive, especially for firms with significant exposure to property work.
None of this sounds especially difficult, and it isn’t. There are firms out there that will struggle to get a good quote in any event, but there are others for whom doing the simple things well and early could mean all the difference. This is worth bearing in mind.
The real experts in this field are Legal Risk, and I would encourage anyone worried about their renewal to visit their website.
Friday, 28 August 2009
Monday, 3 August 2009
Your Most Valuable Asset: Getting the best out of your people
All professional service firms maintain that their people are their greatest asset, and many include outstanding working conditions in their mission statements – but increasing levels of staff turnover and a trend of lateral hiring demonstrate that often this does not ring true.
Smaller and medium-sized firms cannot offer the attractive remuneration packages that the larger city firms can, but they do hold significant advantages. Firms must emphasise opportunities for flexible working patterns, a structured career path, a more specialised or more varied workload, and more face-to-face client interaction. They must be able to demonstrate that their firm has a distinctive culture of excellence and really cares for its people.
1. Involvement
It is vital to get ‘buy in’ from staff at all levels. This starts with the ethos that the firm is a ‘team’, from cleaners through to equity partners and management, and everyone is to be treated as an important player. Therefore, staff must be involved in defining the firm’s direction, communication maintained at all levels and regular information provided about the firm’s performance. Profit-sharing, even in basic roles, is an effective way of demonstrating commitment to these principles, and a dialogue with management maintained. Offering free services to staff add to the sense that they are valued. Moreover, a rewards system for bringing in clients and referrals underlines the ethos that the firm and the staff share goals and priorities.
2. Recruitment
This ethos must be apparent not only to current staff, but also to all new applicants and recruits. Any firm taking this issue seriously will have a dedicated ‘Careers’ section on their website, outlining how they provide a different and caring working environment. Interviews are an opportunity not just to assess the candidate, but to demonstrate the firm’s ethos and community.
3. Training
Training and support are areas in which many firms do not live up to their own highly professed standards. Smaller firms often concentrate resources on technical training, while giving insufficient attention to training for management roles and ‘soft’ skills. Good lawyers do not automatically make good managers, and personal development is an important element in retaining staff. Staff should also be trained in confidentiality standards and good practice, client care and telephone skills, IT and firm processes, and in how to deal with new enquiries.
4. Support
Likewise, fee-earning staff often feel that they are insufficiently supported to carry out their roles to the standards they expect of themselves. Ensuring that fee-earners are supported by the staff and technology they need is key to maintaining excellence as a firm. If a firm must streamline, it should do so by cutting back in unprofitable areas and retaining a reputation for outstanding technical work and client service in its remaining services – even if this means flexible arrangements such as part-time contracts and outsourcing arrangements.
Smaller and medium-sized firms cannot offer the attractive remuneration packages that the larger city firms can, but they do hold significant advantages. Firms must emphasise opportunities for flexible working patterns, a structured career path, a more specialised or more varied workload, and more face-to-face client interaction. They must be able to demonstrate that their firm has a distinctive culture of excellence and really cares for its people.
1. Involvement
It is vital to get ‘buy in’ from staff at all levels. This starts with the ethos that the firm is a ‘team’, from cleaners through to equity partners and management, and everyone is to be treated as an important player. Therefore, staff must be involved in defining the firm’s direction, communication maintained at all levels and regular information provided about the firm’s performance. Profit-sharing, even in basic roles, is an effective way of demonstrating commitment to these principles, and a dialogue with management maintained. Offering free services to staff add to the sense that they are valued. Moreover, a rewards system for bringing in clients and referrals underlines the ethos that the firm and the staff share goals and priorities.
2. Recruitment
This ethos must be apparent not only to current staff, but also to all new applicants and recruits. Any firm taking this issue seriously will have a dedicated ‘Careers’ section on their website, outlining how they provide a different and caring working environment. Interviews are an opportunity not just to assess the candidate, but to demonstrate the firm’s ethos and community.
3. Training
Training and support are areas in which many firms do not live up to their own highly professed standards. Smaller firms often concentrate resources on technical training, while giving insufficient attention to training for management roles and ‘soft’ skills. Good lawyers do not automatically make good managers, and personal development is an important element in retaining staff. Staff should also be trained in confidentiality standards and good practice, client care and telephone skills, IT and firm processes, and in how to deal with new enquiries.
4. Support
Likewise, fee-earning staff often feel that they are insufficiently supported to carry out their roles to the standards they expect of themselves. Ensuring that fee-earners are supported by the staff and technology they need is key to maintaining excellence as a firm. If a firm must streamline, it should do so by cutting back in unprofitable areas and retaining a reputation for outstanding technical work and client service in its remaining services – even if this means flexible arrangements such as part-time contracts and outsourcing arrangements.
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