Law firms can now spread PII costs

As the Professional Indemnity Insurance (PII) market, valued at £3.3 billion, continues to evolve, Premium Credit is introducing a flexible solution for law firms. Effective September 5, 2024, Premium Credit will allow law firms to spread the cost of renewing their PII coverage over convenient monthly instalments, rather than requiring a one-time annual payment.

This option, available through Premium Credit’s network of broker partners, aims to address the financial challenges faced by solicitors and other professions, including accountants and financial advisors, which together constitute 75% to 80% of the PII market. With ongoing high operational costs and inflation affecting businesses, this payment flexibility provides an essential financial relief.

Richard Crossland, Head of Credit Broker – Tax at Premium Credit Specialist Lending, emphasized the significant burden PII can impose on law firms. "With operational costs hitting hard after several years of record-breaking inflation, law firms of all sizes are inevitably experiencing increased financial pressure and seeking new methods to maintain cash flow," Crossland stated.

Premium Credit’s solution allows law firms to manage their cash flow more effectively, freeing up funds for other critical areas of their business, such as facilities and rent. Additionally, the facility extends to practising certificates, another annual expense for solicitors.

As the renewal deadlines for PII and practising certificates approach, law firms may find this payment option particularly beneficial. The application process through Premium Credit is streamlined and user-friendly, with no deposit required and no maximum deal size limit. Premium Credit has previously supported hundreds of law firms by helping them distribute their PII insurance costs over manageable instalments.

For law firms seeking to enhance their liquidity and manage expenses more effectively, Premium Credit offers a viable and straightforward solution. For more details, firms are encouraged to contact their credit broker and explore how this flexible payment option can benefit their business.