How to reduce your professional indemnity premium….

If you are a larger professional services firm and you don't buy your cover online, here are some great tips from our experts that could have a dramatic affect on the professional indemnity insurance premium 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 experts 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. Is the market for your profession still competitive? What do they expect to happen to the premium? This process should begin at least two months before your renewal date to avoid last minute problems when it's too late to shop around.

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.

Create competition

Getting an alternative quotation is an easy process and because of fierce competition will often result in premiums falling dramatically.