Taking into account the current state of the PI market and issues surrounding risk management raised by COVID-19, here are our top tips on how to manage your next renewal:
Don’t wait to get started
The more complete the proposal forms and any additional information you provide the insurers early on, the better chance your broker will have to negotiate in depth. Your broker may require a longer period when placing multi-layer PI coverage to evaluate alternative insurers or find new insurer capacity where established capacity is lost or reduced.02
Prepare to answer more questions
It is crucial to present all proposal forms and related materials to insurers in a concise manner, as they are applying a higher level of scrutiny to the information presented by insureds. Your broker will be able to represent your firm best if you provide as much information as possible from the beginning.
Prepare to answer additional subjectivities
You must be prepared to answer any additional subjectivities posed by insurers in addition to the supplementary information they require. The current market is characterized by a cautious attitude by the insurers, who usually include subjectivities in their initial terms. A comprehensive response is crucial, as it could determine whether an insurer ultimately offers capacity.
Establish a clear strategy with your broker
When working with a broker, it’s extremely important for them to understand your company, from risk management to claims history, as well as the holistic nature of how an insurer will view you. It requires a two-way relationship, where you and your broker establish trust and communicate regularly in order to formulate a strategy that will protect your interests. In all but the smallest firms, (virtual) meetings with insurers should be planned so that you and your broker can formulate your proposal form together. In most cases, simply submitting a proposal form and hoping for the best is unlikely to yield positive results.
Legal Ex plus are specialist brokers with vast experience in arranging insurance for the legal industry. With full access to participating insurers and flexible policies tailored to your needs, we have the specialist knowledge to help you get the right cover with all year-round risk management advice & support.
Call us today for a free quotation 0800180 4203.