Law firms may struggle to pay indemnity insurance premiums

2 September 2013

It has been discussed many times that law firms are facing leaner times ahead with the SRA having many firms on their "watch list", including a reported 30 in the top 200 firms.  The reasons for this are quite well known;  

  • Decline in legal aid.
  • More competition from non lawyers offering legal services as a result of the Legal Services Act
  • Banks becoming less keen on professional services due to weaker balance sheets

Traditionally law firms have not been particularly good at collecting cash in as much of the work is in progress and a focus on billable hours sometimes means that debtors do build up. So if your practice is, or you are

  • Experiencing cashflow problems?
  • You are concerned about paying your professional indemnity premiums?
  • worried that insolvency may affect your ability to practice in the future?
  • You don’t want to risk the SRA Intervention
  • If so then you should read our pages on help for lawyers with cashflow problems

    We are currently helping 4 law firms with their difficulties.  KSA Group were also one of the first firms to do a CVA for a LLP.  See our presentation on the subject.