Solicitors save insurance costs through BSB
In the last few months there have been a number of stories in the legal press about the potential cost savings for small firms of setting up an entity with the Bar Standards Board (BSB) instead of the more traditional Solicitors Regulation Authority (SRA).
One of the latest solicitors to choose this option is David Bowden, a specialist in consumer credit law; with his firm, based in Hertfordshire, called David Bowden Law.
He has reported that by setting up with the BSB he has managed to cut his personal indemnity insurance costs by up to 90 per cent, a cost-saving which he believes will encourage a ‘flood’ of solicitors to switch regulator.
He recently told the Law Gazette that his main reason for choosing the BSB was that their rulebook was less complex than the SRA’s, which kept changing and was “impossible to navigate”. However, he said an expected consequence was a welcome cut to his professional indemnity insurance costs.
He reports that, since signing up with the BSB and insuring with the Bar Mutual, his annual premium has reduced to a tenth of what he paid under SRA regulation.
A small number of solicitors have begun using the bar’s entity model to avoid SRA regulation, with many also citing insurance costs as their reason for switching. Going with the BSB offers considerable cost savings, but it may not suit all practices. Before taking any decision which may affect the operation of your firm it may be best to seek professional advice.
At Moore Thompson, we can help you assess the benefits of changing regulator or any move which may lead to a restructuring of your firm. To find out more about our services, please contact us.