If you are looking for a competitive professional indemnity insurance quote, it is likely the quick search on Google will reveal dozens of websites and insurance brokers, who could offer you a PI quote. If you provide professional advice in the course of your everyday business, a professional indemnity insurance policy will provide a safety net if things go wrong. For skilled advisers who have already run their own small business for some time, an indemnity policy is a ‘must have’ type of insurance. If you are planning to start up a new company for the first time, which involves providing advice, guidance or expert opinion – it is probable you will need to request a professional indemnity insurance quote.
The aim of this type of policy, is to cover the cost of fixing a mistake, should a claim against you arise in the future. In this litigious society, there are many types of claims against professionals, such as professional negligence, or liable and slander, infringement of intellectual property, liability for loss of documents or dishonesty. The other aim of this type of policy, is to pay for the legal costs in the course of defending an action against you. For example, if you work as a professional architect and provide incorrect advice on the structural integrity of a new building design, a disgruntled homeowner may submit a claim for compensation and damages against you in future years to come. Even if the claim is spurious, and you are confident it was not your fault, you will need to pay for solicitors to defend you. So most professionals who buy an indemnity policy, do so so that should an unexpected claim occur, they have some ‘peace of mind’, that the cost of compensation and the cost of defending the action is covered.
Whether you are renewing your existing indemnity policy, by shopping around for a cheaper quote – or whether you are considering starting up in business for the first time – the quotation process is fairly straightforward. Underwriters of such insurance have vast experience of the nature of claims, related to a broad range of professional occupations. As a result, you will find that the questions set within each insurance application form are broadly similar. However it should become apparent to you, that despite the similarities in the marketing of professional indemnity policies, the price quoted can vary considerably. So what can you do to secure the most appropriate policy at the right price?
Obtaining a professional indemnity Insurance quote
It helps during the quotation process, if you can provide an audited set of financial accounts to prove that any historical advice resulted in profitable outcomes. Likewise, you could include a copy of your curriculum vitae, outlining achievements with the clients, reference sites, academic achievements and awards. If you work in a regulated market sector, mention any regulatory approvals your business possess, and whether or not you are a member of your industry sectors recognised Association. All this information helps to boost the confidence of the insurance broker or insurer. Conversely, the less information the broker has to assess the risk more likely they are be concerned that you could potentially be a ‘bad risk’.
Beware that prices between different quotes can vary wildly, due to differences in the levels of cover, the types of exclusions and extensions. So check the policy wording carefully. You must disclose any ‘material facts’, which are required during the quotation process. Failure to do so, may result in future claim being rejected. Professional Indemnity insurance is not the type of insurance policy that lends itself well to online comparison websites. It is possible to find and compare quotes online – yet without examining the key facts and policy wordings in detail of each individual policy, it may be difficult to highlight the differences between one policy and the next. For some standard trades this may be possible. Yet for most specialist professional occupations, the question sets are likely to be tailored to reflect the activities and outcomes of that profession.
It is possible to get a professional indemnity quote online and take the policy out immediately, following payment with a credit or debit card. However most insurers, prefer to review each request for a quote, and speak to the applicant on the phone, before quoting a price and taking on a new risk. In particular, brokers and insurance companies alike, need to understand the levels of risk attached to the nature of the work undertaken. For instance, an accountant, or a surveyor or a letting agent are well-established professions. Whereas advice given in specialist consultancy niche areas, (such as bio fuels all environmental assessment), may need further investigation and clarification. It is likely, you will be asked details of whether you have had any previous claims against you or your business. Even if these claims were settled, or dismissed in court, you must disclose this information. These material facts give the insurer fair an accurate representation of you as a ‘risk’. Generally speaking, professions that are less well understood, have a higher rate of claims, and deal in providing opinions where large sums of money at stake, may have to put up with higher than average insurance quotation prices.
An important aspect of the quote process is to identify any limits of indemnity. In other words, the total amount that will be paid for all claims arising within the policy period. Most policies are retroactive, so that any alleged negligence relating to historical contracts or projects, maybe covered by the policy. So it makes sense to keep your indemnity policy active well into the future, (even if your business has been wound up, or ceased trading). It can be difficult to imagine all types of future disaster scenarios, relating to your particular working conditions or business sector. Common claims relate to professional advice, where expert conclusions were provided, which subsequently contradicted future events (and during which the claimant suffered some type of financial loss). In simple terms, customers and suppliers are looking for someone to blame for what they perceive as poor advice and guidance.
If you would like a professional indemnity quote, please give us a call, or complete the short quote request form above, and we will call you back as soon as possible. Thank you.