Davies Arnold Cooper (DAC) saved itself from heavy losses in the Independent Insurance collapse by starting a credit control push a year ago that reduced the firm's exposure to all its insurance clients.
A DAC spokeswoman said that, as one of the major law firms on Independent's panel, the collapse would have an impact on the firm, but that it was not significant to the business as a whole.
“The majority of the work which we do for Independent relates to employer's liability insurance,” she said.
“While this remains important to the firm, the strategy of the practice over the past 18 months has been to focus on developing our insurance business outside of employer's liability.
“Further, as a result of our views on prospects within the industry, we'd put in place a general credit control push which over the past 12 months has significantly reduced the firm's exposure to all our clients in the
insurance sector, including Independent.”
DAC is now in contact with the other big firms on the panel “with a view to establishing the way forward” and are in contact with provisional liquidators Pricewaterhousecoopers.
“We expect to work with those panel members and the liquidator to protect the interests of the policyholders,' the spokeswoman said.
