In a groundbreaking move for the legal industry, an alternative business structure (ABS) has emerged as the first law firm to introduce its own professional indemnity insurance, with plans for further expansion through acquisitions.
rradar, established in Hull in 2012 and transitioning to an ABS in 2014, initially focused on employment, taxation, health and safety, and environmental law. It has quietly expanded its presence, now boasting a staff of nearly 300 across seven offices in England and Scotland. The firm’s founder, Gary Gallen, revealed that their growth attracted a significant eight-figure investment from the Abu Dhabi Investment Authority and Madison Dearborn Partners at the end of 2022, marking a first in the legal sector.
The firm’s new insurance initiative, named rrelentless and led by Matthew Williams, begins with a cyber insurance product backed by AXA, with plans to introduce management liability and professional indemnity insurance by early 2025. Gallen remarked on the outdated nature of current insurance policies that have not kept pace with modern challenges such as remote working, stating, “Law and insurance are in my view completely inextricably linked. By partnering with the insurance industry we’ve built a new kind of law firm.”
This strategic venture reflects rradar’s larger vision to offer law firms advanced consultancy services premised on the notion that prevention outweighs the necessity of cure. The firm not only provides insurance but also varying levels of consultancy advice aimed at enabling law firms to adopt smarter business models, ensuring their practices are viable and efficient.
Furthermore, rradar plans to acquire up to 100 law firms, having already completed the purchase of specialist firm Backhouse Jones, known for its role in the trucks cartel litigation. This acquisition underscores rradar’s credentials in delivering specialised legal services even in highly competitive areas dominated by larger firms.
Gallen’s ambition is apparent as he emphasises the firm’s pioneering status in launching its own insurance company and securing funding from a sovereign wealth fund, stating, “We’re the first law firm to have its own insurance company, the first to be financed by a sovereign wealth fund. You’ve got to be quite brave. Lawyers don’t like to take risks.”
rradar’s innovative approach, combining legal and insurance services backed by substantial investment, sets a new precedent in the legal industry, challenging traditional business structures and showcasing a forward-thinking strategy.
