Does the Future Belong to Smaller Law Firms?
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Text: What reasons do small law firms have to be optimistic? Logo and text: TRAVELERS, Small Business Insurance for now & beyond. Jim Jack, Underwriter, Travelers Bond & Specialty Europe.
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In some ways, the legal profession is growing in terms of number of small law firms that are operating within it. I think clients are much more readily accepting of smaller firms that are setting up and operating in niche areas of law. And we're seeing a number of -- in fact, we're seeing a really large growth in the number of new startups that come to us asking for insurance.
So it feels like there's definitely a buoyancy in the economy that's supporting smaller law firms that are providing law to clients in a different way. So many of the inquiries that we're getting effectively are business plans for new ventures are thinking about changing their legal service delivery, might be thinking about changing the structure of the law firm or the structure of a traditional law firm, let's call it.
They're thinking about what a client actually wants and what a client actually needs and maybe thinking about different ways of delivering that to a client. And of course, smaller firms can be more nimble. They can make greater changes more quickly. And they can respond perhaps more speedily to the sorts of challenges that clients are asking for in a way that perhaps large law firms can't.
So the future looks really good for any small enterprise and any small legal enterprise that's thought about how it can be successful, thought about the clients that it can service, and thought about ways in which servicing those clients can be done differently, more effectively, more cost-effectively, and with better customer service. So I think there's lots of reasons to be optimistic.
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Expert cover for the legal sector. www.travelers.co.uk.
TRAVELERS, Small Business Insurance for now & beyond.
Jim Jack, Head of Professional Indemnity, Travelers Insurance
Along with my colleagues at Travelers, I’ve noticed significant growth in the number of legal start-ups looking for insurance services. Many of them are effectively business plans for new ventures exploring alternative structures to the traditional law firm.
These start-ups often involve a mix of disciplines
Law is obviously at the core, but I’ve also seen them offer, for example, a good technical specialist, such as a young graduate with superb IT skills. That obviously has real value for internet start-ups.
I am also really encouraged to see different disciplines come together to offer a broader service and meet the wider client demands. After all, the needs of businesses are changing and tomorrow’s law practices will need to evolve if they are to meet client demands.
Client-centered service
What’s exciting is that these small law firms are really thinking about what clients want and finding different ways to bring it about. It’s only natural that smaller firms would lead the way since they are nimble enough to respond speedily to changing client demands. They also benefit from the scalability of today’s technology.
I think the future looks bright for any small legal enterprise that’s thought about how it can be successful, thought about the clients it can service and about how to do things differently, more effectively, more cost effectively and with better customer service.
As Howard Rosenberg, CEO of corporate intelligence provider Decipher recently explained, “Small law firms are close to the clients, they can get initiatives up and running much faster without the bureaucracy. Whether it’s pricing, differentiating their product, technological innovation, or a combination of all those things, they are in a good place to create competitive advantage in the market.”
Is the future bright for smaller firms? Well, in a fast-growing and increasingly technology-driven economy, they certainly have reasons for optimism.
