How to reduce your professional indemnity premium....
If you are a professional services firm, here are some great tips from our experts that could have a dramatic affect on the professional indemnity insurance premium that you pay...
Create the right impression
If you have to complete a proposal form, it will be reviewed by an experienced underwriter. Your proposal form is a representation of the quality of your business to the insurance market, so spend some time making sure it looks professional as people will be using it to judge you. A good PI underwriter will also look at your website and perhaps your financial information.
Make sure insurers know about the good stuff
If you spend time and money on risk management and improving quality, make sure your insurer knows about it. This could easily be overlooked and not reflected in your premium so add some notes on this subject.
Plan your renewal early
Ask your broker for their informed view of the current PI market and their plan for handling your renewal. This should be done two months before your renewal date.
Set the timescale with your broker
Aim to have your renewal terms and alternative quotations available at least one month before your renewal date. Within reason, ensure that timings for the renewal process are pre agreed and clearly understood by everyone.
Review your level of cover
Insurance rates rise and fall and so a flexible approach to the level of cover purchased is sometimes needed. Instruct your broker to obtain a range of limits so that cost and risk can be fully considered and you have the option to adjust your level of cover up or down as necessary within budget.
Meet your Underwriter
For larger policyholders, this can be set up by your broker and will help you establish a stronger long-term relationship with your Insurer.
Explain any claims
If you have a large claim/s, don’t rely on a standard print out sheet to give a satisfactory explanation. Your current insurer may already have full details, but that won’t help any other insurer being asked to quote. Give some background about the claim/s and some assurance on actions taken to avoid a recurrence.
Getting an alternative quotation is an easy process and because of fierce competition will often result in premiums falling dramatically.
Not suitable for everyone, but buying PI cover online is now becoming an easy and effective way of arranging insurance. It has a clear cost advantage to insurers which is passed on to the policyholder.
Professional Indemnity Insurance Brokers Ltd - 0345 251 4000
This article is intended for information purposes only. Whilst all care has been taken to ensure the accuracy of the article it is not to be regarded as a substitute for specific advice. © 2017 Professional Indemnity Insurance Brokers Ltd