News
Clients are increasingly asking their solicitors about their business continuity plans, according to Legal Risk Solicitors’ fifth annual survey.
More than three-quarters of the top 100 law firms have finalised a business continuity plan, while the rest have at least a draft plan in place.
However, just over a third of the 64 firms responding to the survey say they have tested their plans in the last 12 months.
The law firms responding to Legal Risk’s Top 100 Law Firm Professional Indemnity and Risk Management Survey 2008 include 22 of the top 30 firms and range from Magic Circle to the smaller firms.
Every firm states that it limits liability contractually at least part of the time. According to Legal Risk, limitation of liability clauses “are becoming more sophisticated and involve more than a simple liability cap...we doubt many firms limit liability 100% of the time”.
Some 14% of firms changed broker, while 9% changed insurer in a soft insurance market.
Legal Risk partner, Frank Maher, says: “The continued low cost of insurance is reflected in the fact that 25% of respondents increased cover. However we believe there is a real risk that after this year’s renewal, not only will insurance costs rise significantly but some firms may have far more difficulty obtaining the cover they want.”
