Finlex provides special digital D&O insurance solution with four insurers for law firm managers

Law firms are increasingly taking out special D&O insurance cover for their management staff. The need for such protection became clearer than ever before with the reform of BRAO (Bundesrechtsanwaltsordnung [German Legal Profession Act]). The revision of the professional law governing professional practice companies providing legal and tax consulting services as well as other regulations in legal consulting professions came into force on 01/08/2022.

Key management topics for law firm managers

Not only the BRAO reform, but also the ever-growing requirements for corporate compliance are continuously increasing the personal liability risk of law firm management. Current topics such as digitalisation, IT security and compliance requirements, for example coming from the LkSG (Lieferkettensorgfaltspflichtengesetz [German Supply Chain Due Diligence Act]) and data protection, entail increased complexity and susceptibility to errors for the management of law firms. In this respect, law firms providing legal and business consultancy do not differ from commercial companies.

Professional liability insurance does not offer insurance cover in the event of management mistakes

In order to protect their management staff against personal liability due to management mistakes, commercial companies usually take out D&O insurance for them. However, the market has not yet offered any special, fully-fledged D&O product to law firms. In addition, the scope of cover for professional liability insurance does not include damages resulting from management mistakes since these are not errors made when exercising mandated activities. This is because it only protects against liability risks arising from professional practice as a lawyer, patent lawyer, tax consultant and auditor including the statutory insurance obligation. This is a third-party indemnity insurance policy if you disregard the small coverage modules with sub-limits that some insurers offer.

“D&O insurance is a useful addition to the insurance portfolio of many law firms. Our customers are very interested in relevant offerings and advice,” says Ass. jur. (assistant lawyer) Stephan Kohlhaas, member of the management of Von Lauff und Bolz Versicherungsmakler GmbH, a top German brokerage firm specialising in insurance solutions for the legal and business consulting professions.

D&O insurance specifically for law firm managers

Frankfurt-based InsurTech Finlex now has a new offering on its online platform for law firms employing mostly lawyers, tax consultants or patent lawyers: D&O insurance for law firm managers. The risk bearers, Markel, ERGO, Newline and Zurich, underwrite insurance cover that is both smart and digital, tailored to the needs of this target group at a uniquely high level and with a relatively low need for information.

Favourable conditions

“The insurance conditions not only fit all legal entity forms, but – depending on the insurer – are characterised, among others, by a broad group of co-insured persons, co-insured subsidiaries, co-insurable affiliates, ODL (Outside Directorship Liability) solutions as well as components for criminal legal protection and first-party indemnity” emphasises Petra Bertinetti, Professional Indemnity Insurance Expert at Finlex.

Insured sums of up to EUR 10 million are available for law firm revenues of up to EUR 250 million.

The structure of the questions and premiums is more favourable than in a general corporate D&O since the insurers are not too concerned about insolvency risk for law firms. Business documents must only be submitted under special circumstances.

New landing page for brokers

Brokers can easily receive detailed comparison offers for their customers in a very short time. They can also use the new landing page for this, providing customers with the questionnaire and useful product information via email link.

Finlex’s innovative D&O insurance solution eases the way for law firms to get this important insurance coverage.

The following images are authorised for reprinting subject to editorial, non-commercial use only.

Ass. jur. Stephan Kohlhaas | (press photo )
Petra Bertinetti | (press photo )

Photo credits: Finlex GmbH

About Finlex GmbH

Finlex – the online insurance platform for commercial and industrial customers with a focus on financial lines such as D&O, Cyber, criminal legal and PI insurance.

In the Insurance industry Finlex is considered as one of the few ‘scale-ups’ with enormous potential. Scale-ups are start-ups that have left the initial phase and are showing rapid growth. Finlex combines expert knowledge from the commercial and industrial insurance sector with the most advanced technology. The needs of the customer always come first. The platform offers insurance brokers with a focus on corporate clients a white label solution with market-leading specialty products and all relevant insurers in one place. From tendering to contract, renewal and portfolio functions to an extensive knowledge base, the platform provides brokers with their own digital infrastructure. For insurers, it enables automated underwriting (robo-underwriting) for financial lines products and access to the leading industry brokers in Germany, Austria and soon France. Finlex is headquartered in Frankfurt am Main with offices in Barcelona, Berlin, Düsseldorf, Essen, Paris, and Vienna. The company was founded in 2015 and today employs more than 130 people.