Our Tips To Reduce Your Professional Indemnity Premium

Everything You Need To Know...

Ten tips from our professional Legal Ex experts that help reduce your premium…

1. Creating the right impression

If you have to complete a proposal form it will be reviewed by an experienced Underwriter. The completed form is a ‘presentation’ of your business to the insurance market, so spend some time making sure it looks professional. They will use it to judge the quality of your firm.

2. Make sure you tell them about all 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.

3. Plan your renewal early

Ask your broker for their view of the current PI market for your profession and their plan for managing your renewal. This should be done two months before your renewal date.

4. Specify your deadline

Aim to have your renewal terms and alternative quotations available at least one month before your renewal date. Within reason, ensure that the timings for the renewal process are pre-agreed and clearly understood by everyone, especially your broker.

5. Review your level of cover

Insurance rates rise and fall 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.

6. Meet your Underwriter

For larger policyholders, this can be set up by the broker and helps establish a stronger long-term relationship with your Insurer.

7. Explain any large claims

If you have any large claims, don’t rely on a standard print-out sheet to give a satisfactory explanation. Give some background about the claim and some assurance on actions taken to avoid a recurrence.

8. Create competition

Getting an alternative quotation is an easy process and competition will often result in premiums falling dramatically. Your broker should be one of your trusted advisers but still needs to be tested if you want to avoid complacency.

9. Buy online

Not suitable for everyone, but buying professional indemnity insurance online is becoming an easy and effective way of arranging insurance. It has a clear cost advantage to insurers which is passed on to the policyholder. Generally best suited for businesses with up to £ 150,000 turnover and with no adverse underwriting features.

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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. © 2023 Legal Explus Limited.