Specialism over globalism
SPECIALIST*
noun: a person who is highly skilled or knowledgeable in a particular field.
adjective: relating to or involving detailed knowledge or a specific focus within a field.
DERIVATIVES specialism noun.
*Source: The Compact Oxford English Dictionary of Current English, 3rd Edition, Publication date: 23 June 2005
How does your firm make the decision as to where to invest its trust in terms of professional indemnity insurance?
The Professional Indemnity Insurance market has accelerated recently due to industry bodies introducing cover as a requirement of membership, more and more people attaining professional qualifications, and companies using the services of external service providers. Consequently the number of professional indemnity providers has increased, and often general insurance brokers are offering professional indemnity insurance without being able to provide the right kind of advice.
Modern day professionals are problem solvers and business advisers with a wide range of skills and proficiency in many business areas. Therefore you should seek a broker that understands the value and risk placed on the advice you give. While understanding your requirements they must be proactive in terms of meeting your specific needs.
It is important to qualify a broker’s track record in terms of supplying professional indemnity insurance to your profession. Some simple questions can be asked:
● How many years have you been supplying professional indemnity?
● How many clients do you currently service in my profession?
● Are you endorsed or appointed by any governing or regulatory body?
There are limited professional indemnity specialists in the market, how do you know you are talking to one?
Firstly, ask if they deal direct with the underwriter — a specialist will have direct access to the underwriter rating your risk. This is vital in terms of the broker being able to negotiate effectively on your behalf; the process is more fluid and information is transferred more accurately. When seeking terms we advise any firm to select one other specialist to undertake their market exercise in addition to their incumbent service provider. Why? Non specialists may simply flood the market with their proposal, whereas specialists will know which underwriters to approach. Furthermore, specialists invariably have exclusive relationships with major underwriters, enhancing their negotiating capabilities.
Today’s specialist professional insurance broker cannot be gauged merely on the insurance services they offer, a key indicator now is their ability to effectively handle claims, after all, this is why you purchase professional indemnity cover in the first place! They should effectively manage the entire process, ensuring you are fully informed throughout. Communication is key, and a strong, professional and trustworthy relationship with your broker will guarantee a smoother process. When claims are made against you, your reputation is at stake. Your broker should understand this and advise you of measures that can be deployed, ensuring an acceptable resolution to all parties.
Having established the broker’s credentials and ability to serve you, what other relevant services can they offer?
Specialists have the expertise to provide ancillary benefits which enhance the overall offering. Look to services which address areas of risk within your day to day operations such as legal matters, staff issues, financial support with regard to premium payments and wider policy wordings.
When it comes to safeguarding your company and its reputation, surely you want a highly skilled specialist working on your behalf?
Your broker should be advising you on how best to present your risk so that an insurer is going to take notice and offer terms that accurately reflect your operation, and that are in line with current market conditions.
Specialists will present your firm’s case to the markets that will quote you, and the quality of the presentation your broker makes to market is critical.
A specialist will have developed the appropriate proposal form and know the right questions to ask of you, so that the most relevant cover is offered - therefore a fair and accurate premium is quoted.
Ultimately, the relationship between you and your broker is integral to getting the most from your professional indemnity insurance.
At SBJ, our understanding of the professions stems from work with over 5,000 UK firms covering the entire professional spectrum, from sole practitioners to ‘Top 20’ organisations, and from our standing as one of the largest brokers in the professional indemnity market.
As far as 2007 rates are concerned, what are the markets going to do? The simple reality is that no-one can be certain what will happen; the only certainty we can guarantee all our clients is that a true and accurate presentation will be made to market, and the premium quoted will accurately reflect our clients operation and approach to risk management.
It would be inappropriate for any broker to introduce a guarantee to any potential client an anticipated premium saving. However SBJ professional can say with certainty that over the past 12 months we have saved clients anywhere between 50% — 10% on their previous years exposure which is testament to our standing in the market as a specialist PI broker.
When deciding where to look for advice, would you not agree that you and your business are better protected from the service of a specialist rather than that of a generalist?
For more information or to talk with a member of our specialist team email us at enquiry@sbj-pi.com, call 0117 929 3344 or submit an online request to register your interest.