Saving 27% on Professional Indemnity Finance Costs

Please note that although this Case Study is based on work we carried out for a Legal Practice, we offer PII Finance for all types of professional firms including Accountants, Actuaries, Architects, IFA's, Surveyors Wealth Managers and Healthcare and Finance Professionals.

Please call 020 3318 3145 to speak to our experts about your specific requirements. 

Client Requirements

As this highly successful legal practice grew, they saw costs for PI cover increase by 40% to £580,000. This figure was a massive dent in potential cash flow, which the partners wanted to avoid as it would effectively hamstring their business and restrict the firm’s ability to grow.

Coupled with a planned shift to remote work that came with its own equipment and infrastructure costs, the firm was keen to find an alternative and more cost effective way to fund its vital PII Cover.

One of Rangewell's PII Finance experts sat down with the Practice Manager and during the conversation it quickly became apparent that the practice was involved in a number of specialist areas of law (hence their increased premiums)

Rangewell were able to help in a number of ways

1. We quickly realised that his current insurer had not carried out a comprehensive risk-adjusted review of the practice and it would be useful to speak to alternative insurance brokers who might be able to achieve more bespoke pricing
2. With access to the whole of market, Rangewell spoke to a wider range of finance providers that the client had been able to access
3. Whilst the client was speaking to other insurance brokers we were able to get detailed decisions in principle that we progressed to full offers within 24 hours of the final PII terms being agreed
4. We also agreed a pay-out date that tied in with the insurance renewal terms
5. Once the new quote for both insurance and finance had been reviewed and accepted, Rangewell worked with all counterparties to quickly and efficiently process the paperwork

Why was there a problem?

As a successful firm, the business faced mounting insurance costs that could not be ignored. In addition, at the time of their renewal, the firm also intended to provide more support for remote working, which meant they needed cash flow to fund equipment purchases etc. These factors combined meant they needed a different way to pay for their cover without impacting their day-to-day cash flow.

Why we were able to help

The demands of PII liability are significant and unignorable for firms – but the way the liability is paid can be made to work more effectively for the firm itself. For our client, Rangewell were able to negotiate with lenders and secure both 6 and 12-month PII loan options, whereby a lender would cover the cost of the insurance premium at a repayment rate that was more visible and forecastable than the insurer’s costs.

After negotiating these options, we returned to the client and discussed their needs. They then chose a 12-month PII loan that was paid directly to the insurer, meaning there was no change to the legal firm’s cash flow or reserves. Instead, they could focus on growing their business. The team even commented that the repayments to the loan were negligible compared to the benefits of cash flow management.

About finance in the legal services industry

Professional indemnity insurance premiums can be a significant barrier for law firms, especially when faced with rising costs at renewal. Professional indemnity loans can be specially crafted to support legal firms with cash flow management and mitigate the upfront premium.

However, arranging these loans requires getting in front of the right lenders who can offer the correct finance package to suit your needs. We can help make that a reality thanks to our existing network.

Rangewell helps secure PII loans

We’ll act on your behalf to approach lenders across the UK and secure the right deals for your requirements. If you’ve been hit with a large PII premium and can’t pay it from your ordinary cash flow, we’ll be able to find the right lender and negotiate the best deal for you. Get in touch to learn more.