Have you ever had to extend your PI cover while waiting for your broker to finalise your renewal terms? We came across a case recently of an insurance broker getting it spectacularly wrong for their client...............
An Accountancy firm were given their renewal terms by their broker just a few days before the policy renewed. The premium had increased by 50% and no alternative quotes were offered. They were told that their renewal form was “not accepted by other insurers to quote”.......strange as all PI insurers now willing quote using another companies proposal form. The Accountant told their broker that the premium increase was not acceptable and they required alternative quotes. They also decided to take some advice from specialist PI brokers.
Becoming worried about losing a client, their broker told them they would talk to the existing insurers again to see if the premium could be reduced.
In the meantime, the policy renewal date came and went. Three days later the broker came back and said they’d spoken to the insurers who would agree to reduce the premium but couldn’t specify by how much!
During this time, the Accountant had obtained a much better alternative quote (from us!) and having lost some confidence in their broker decided to change. On the day they were about to change broker and insurer, a new claim arrived in their morning post.
The Accountant had rightly assumed their broker had arranged an extension of cover as;
1. Renewal discussions were still ongoing
2. They received their renewal terms late
3. They had not been told their cover had expired and their broker clearly had an obligation to ensure they remained protected
The broker hadn’t arranged the extension and the new claim was rejected by the insurers who claimed they had come off cover as at the renewal date some days earlier. The Accountant is now considering making a PI claim against the broker.
Yes.....you now want to know who the broker was but we can’t possibly say, other than it was a national broker who frankly should have known better!