Archive for August, 2012

Solicitors’ “silly season” is not so silly

Posted by 20 August, 2012 (0) Comment

Silly season is upon us and the PI renewal scramble has already started. Yet it isn’t so mad this year. Read on to find out if that is because of the ABS’, SRA or insurers.

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Rates Are Down

Deck of cards on a graph - Business GambleCould it be that insurance companies are being more amenable because there are now fewer firms looking for specialist solicitors indemnity? Their market is shrinking. Perhaps firms set up as ABS’ have found a better way of meeting SRA requirements? Perhaps new regulations for COLPs and COFAs have lead to fewer claims.

It’s more likely that the new entrance into this specialist market have increased competition. This could lead to short term gains and long term pains, like Quinn.

Are New Entrants Good News?

There is a certain amount of irony here. Over the last few years insurance companies have not accepted proposals from solicitors with shaky finances. Yet solicitors will accept quotations from insurance companies they’ve never heard of, with claims departments that may as well be in Timbuktu.

Solicitors seem happy to rely on the fact that SRA approved the new entrants, and brokers are happy to offer the quotations if it secures them a client or renewal.

Memories must be extremely short because the SRA approved Quinn too, and brokers continued to offer Quinn quotations days before they went bust.

Dig A Little Deeper

It’s a good time for solicitors to take their pick from the available insurance companies. I can still see the logic in getting the best rates, reducing costs and ticking the SRA box.

Now the market is competitive again it would be prudent to delve a little deeper into insurance company service. Does the policy provide the right cover – yes. Will you get assistance from the claims department – probably. Will the way the claim is handled meet your expectations… who knows!

Wrap up: COLPs and COFAs – love the role or hate it, they are the people that can implement lessons that businesses have learnt and solicitors have been deprived of. The identification of near misses and risks that solicitors were previously unaware of, will help practises evolve profitably.

Top tip: COLPs and COFAs can reduce costs and increase profits. Undertaking the role properly will mean both can be achieved independently of each other.

Who to share this with: Managing Partners, COLPs and COFAs.

Categories : Accountants Insurance,After The Event,All Risks Insurance,Building Contractor,Business Insurance,Company Insurance,Contractors Insurance,Customer Service,General Requirements,Health & Safety,Legal expenses insurance,Liability Insurance,Litigation expenses insurance,Personal Insurance,Solicitors indemnity,Solicitors insurance,Trade,Uncategorized Tags : , , , , , , , , , , , , ,

When complainants get tough, the tough respond cordially

Posted by 14 August, 2012 (0) Comment

Business owners dread a call from an unhappy client. This post is about what happens when a meeting causes panic. Read on to find out who is on the receiving end, why it happens, and how to avoid setting dangerous precedents.

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I’ve just had my business arse kicked! Am I covered?

 

Computer keyboard - Press the "any" keyMike phones me at 4pm on a Monday. It’s immediately clear that he’s flustered. It transpires he has just  left a meeting with a client for whom he has been providing IT services for nearly a year. “I feel like I’ve had a good kicking. We’ve been accused of making mistakes and fraud. I really need to know – am I covered for this, especially if they take action?”

This is not an everyday occurrence in my world, but it happens with enough frequency that we are used to it. We plan for it by making ourselves available every day because we want to help when it’s most needed. Mike was “covered” and I let him know immediately. He wanted a good night’s sleep, and the finer points can be ironed out when full details are known.

So what are the chances of keeping everyone happy all of the time?

 

I remember when Mike and I first sat down 3 years ago. His business was, and still is, growing rapidly, and clients expectations change all the time too. The main concern at the time was this type of issue, because IT changes as quick as customer expectations. The unfounded allegation of fraud was the result of a “competitor” getting involved.

It is a real blow when a client becomes unhappy. Yet this particular complainant had been egged on by another company, who probably wanted to usurp Mike. The competition went as far as producing a damming report, with a host of allegations that the client could wave in front of Mike, which the client did, with relish.

Apart from shock and horror, are there other issues?

 

Time. It takes time to answer any complaint. Time should be taken to avoid making the matter worse. What is vital is to take a massive deep breath, work out what has actually happened and make sure communications are clear.

This has since been achieved, and the angry party have calmed down, after they received a considered response. Even so, complainants make unrealistic demands when they’re angry and meetings without agendas set a dangerous precedent.

Wrap up: When a business is growing, learn to expect the unexpected, and plan for it. Keep in mind clients expectations change all the time too, and giving in to unrealistic demands of angry clients is not the most sensible response. Take time out to consider the situation from all angles and ensure all outgoing communications are cordial.

Top tip: In all cases, insurance companies must be kept fully informed of all progress and have lot’s of experience in what works and what doesn’t. It makes sense to lean on them rather than trying to avoid the issue or worry about unlikely premium increases.

Share this with: business owners, service providers, IT people, contractors, and anyone else who gets involved in providing a service to the demanding.

Names have been changed to protect the truly innocent.

Categories : Accountants Insurance,After The Event,All Risks Insurance,Business Insurance,Company Insurance,Customer Service,General Requirements,Legal expenses insurance,Liability Insurance,Litigation expenses insurance,Personal Insurance,Solicitors indemnity,Solicitors insurance,Trade,Uncategorized Tags : , , , , , , , , , , , , , , , , , ,