In the last 24 months there has been a major shift in attitude from Professional Indemnity Insurers across a diverse sector. In construction, Grenfell Tower led to a surge in claims and the surveying and architect community were badly hit. Looking at the accountancy sector there has also been an increase in liability claims due to HMRC and tax fraud investigations, advice coming from IFA's around pension transfers have also been affected. Whether you are a sole practitioner or a larger firm of partners, lawyers have all seen an increase in cases that require careful investigation and the need for liability protection.
The effect of all of this has been that the insurance market for PI has recently tightened, and there are now significantly fewer providers than there were previously, with a greater number of claims being made. Remaining insurers have, therefore, been evaluating their portfolios and implementing corrective measures to ensure they can remain profitable for the medium to long term.
Exposure is being reduced with less cover being provided. Excesses are increasing as well as premiums.
From the perspective of businesses and the professional community, starting the renewal process early and sticking with an experienced broker is key for maintaining security, stability, and the most effective possible level of cover.
Fortunately, there is still enough capacity to meet customer needs, but, understandably, PI rates have increased significantly.
We work closely with a leading PI Insurance Broker as part of our Trusted Advisor team. If you would like to discuss your renewal premium or are in need of taking out such cover for the first time, please get in touch with us in plenty of time to secure the best policy for your business. Whether you are a freelance contractor, sole practitioner or a larger firm of solicitors or accountants, our partner can facilitate single policies as well as portfolios.
Funding this comes at a considerable cost. With depressed revenues across most sectors due to Covid, cash in the business is under pressure just to stay afloat. We have a solution here with Business PI Finance. We work closely with selected funders who will help provide the funding in order for you to meet your insurance obligations, and in many cases, statutory responsibilities. Do not let your policies lapse due to financial difficulties, we are here to help. If you act quickly, we can even provide the funding for you under the CBILS scheme and you won't have to make any loan repayments for 12 months. This offer expires on the 30th of September when CBILS is wound up by the Government.
We look forward to hearing from you with your funding requirements and we can also introduce you to our insurance partner.
Source: Morpheus Insurance Solutions