By Kevin Bonner, Estatesure Insurance Lead
Q1) What was the driver to introduce a range of insurance services for legal firms working in estate administration?
KB: “We were keen to protect our legal clients. Over the years, the modern family unit has changed and become more complex. Divorce is far more common these days and this means families have become extended and dispersed giving rise to more challenges when it comes to estate administration and distribution. Property values have also risen giving people more reason to pursue a potentially lucrative claim.
Awareness of the term ‘where there’s blame there’s a claim’ and the rise in firms offering no-win-no-fee arrangements also means people are far more aware of and are more likely to pursue litigation than ever before. We aimed to develop a range of affordable insurance policies to protect businesses and minimise the need for them to call upon use of their own professional covers.
Q2) Why should firms consider insurance in estate administration cases?
KB: “There are several reasons why firms should consider cost-effective insurance for specific elements related to estate administration. Insurance offers business resilience and brand protection. It also offers a cost-effective risk transfer from making small claims against already costly professional covers. The last thing any legal firm wants is to put their professional indemnity insurer on notification of a claim. Solicitors can be held personally liable for errors or omissions made during the administration of the estate and so insuring against this mitigates any risk, promoting good business practice.
“Insurance also covers financial loss in the event of a claim. Solicitors without insurance coverage may be forced to cover legal costs and compensation fees out of pocket.”
Q3) What are the hazards if a claim is made?
KB: “Any claim means potential exposure to complex litigation. This takes up considerable administrative time and expense to the organisation. A successful claim will risk existing professional covers or may result in higher premiums. Loss of reputation and clients following a successful claim where insurance has been omitted also needs to be considered.”
Q4) What Does Estatesure Offer?
KB: “We offer a range of cost-effective insurance policies including:
- Unoccupied Property Insurance
- Early Distribution
- Missing Beneficiary
- Missing or Lost Share Certificates
- Missing Will
- No Section 27
“Our unoccupied property insurance is particularly popular. Any property held within an estate usually represents the singular biggest asset and needs to be protected appropriately when no-one is living in it anymore.
“This product is a value-driven solution and can be set up within hours. Unlike other policies, we only need to confirm when the property was built and the type of boiler/heating system that’s installed, to insure the property. Weekly inspections are not required either, which otherwise can be onerous and introduce costs to the estate if agents need to be hired to visit the property on a regular basis.”
Q5: Why do you feel insurance in estate administration is so important these days?
KB: “The legal landscape is changing. With the increased risk of litigation, firms must look at protecting their professional indemnity insurance for bigger claims. Our range of situation specific policies are an economical way to ensure due diligence and mitigate risk.”
For further information about Estatesure’s range of services please see: https://www.estatesure.co.uk/ or email helpdesk@estatesure.co.uk
This article was published by Estatesearch as part of their advertising agreement with Today’s Wills and Probate.
The views expressed in this article are those of the submitter and not those of Today’s Wills and Probate.
