Professional Indemnity cover in a hard market
Recent insurance disasters—such as the Grenfell tragedy and the collapse of Carillion—have generated a significant increase in professional indemnity (PI) claims throughout the UK. This surge in demand for PI cover has resulted in a major market fluctuation, leaving insurers to pay the hefty price tag of additional claims with a limited financial supply. Consequently, insurance experts confirm that the PI market has lost half a dozen insurers in the past year.
Further, the insurers that have remained in the PI market have implemented measures to reduce their risk of paying out costly claim settlements. These measures include requiring extra documentation, increasing premium rates and having additional cover restrictions in place. Despite the harsh implications of the hardening PI market, you can help your organisation maintain adequate cover with this guidance:
- Communicate with your broker—Ensuring frequent communication with your broker will help you stay informed and covered during these market conditions.
- Start the renewal process early—Be sure to start your PI policy renewal process as early as possible. Doing so will give you plenty of time to gather any extra documentation required for renewal.
- Invest in risk management—Now more than ever, it’s vital to invest in robust risk management processes and provide documentation of these practices to your insurer upon renewal.
Contact Lockyers today for more PI insurance guidance