Really interested to read a post by Neil Rose on the Legal Futures blog yesterday that ‘Insurance and client capability are “main barriers” to unbundling‘.
That professional indemnity insurance might be higher for unbundled matters has long been discussed, and not without merit in my view given the risks associated with quality of work and associated scoping of that work – in other words, correctly identifying who is doing what, when.
While the sample used in the Solicitors Regulation Authority’s (SRA) report quoted heavily in Rose’s article could hardly be called #BigLaw (as I think the term is called these days), one of the comments in the report was very telling:
“Interestingly, insurance companies find there is less risk where a firm uses technology because there is an audit trail.”
While I could be wrong, I suspect that could be the case in many circumstances relating to PI coverage in unbundled matters going forward.
Shared platforms anyone!?!…