Unfortunately, few businesses are completely immune and it is sadly inevitable that some will be facing financial difficulty - and therefore seeking to reduce overheads.
For some, annual insurance renewals or monthly payments will be cause for concern – there is a clear need to keep insurance cover in place but premium payments may represent a serious strain on already stretched finances.
So, what can those in financial difficulty do to balance these two pressures?
What to do if you are struggling with insurance premium payments
Contact your dedicated Marsh Commercial client advisor or account executive to discuss your situation. We will work on a case-by-case basis with our clients and do our utmost to assist those facing financial difficulty at this unprecedented time. Where possible, we will assess whether premiums can be reduced, or help you set up monthly payments to spread the cost – to ensure you remain protected while reducing the financial burden.Remember, simply cancelling insurance payments is not advised, as this may invalidate your insurance cover, leaving your business exposed to further financial risk.
What to do if you are forced to pause trading
Ceasing cover during a business “pause” could leave you exposed to potentially expensive claims – even historical claims – without insurance cover in place to help with defence costs and compensation. That is because professional indemnity insurance is written on a “claims made” basis, which means that cover must be in place at the time of a claim, not at the time of incident that a claim arises from.With that in mind, it is very important to maintain your professional indemnity insurance cover even during a business pause. However, as above it may be possible to reduce or spread your payments as monthly installments - get in touch with your Marsh Commercial client advisor for further advice.
What to do if you’ve no choice but to cease practicing
We understand and sympathise with any businesses forced to cease practicing, and how you must be feeling at a time like this. However, we would not recommend cancelling your professional indemnity cover altogether. Holding a minimum of two years run-off cover and ideally six years helps to protect you against historical claims following business cessation.Here to help
Your Marsh Commercial client advisor is here to help. Whether you are struggling with premium payments or need guidance on insurance issues more generally, don’t hesitate to get in touch.Share this article
Read our latest related articles
-
November 30, 2023
What is Professional Indemnity (PI) Insurance and other FAQs
Professional indemnity (PI) insurance is often a mandatory requirement of your professional body, or contract. However, the importance of this cover is often misunderstood. PI insurance gives you the protection you need to support your clients with confidence. So, what is PI insurance, and why do you need it? We answer some frequently asked questions about PI insurance.
-
November 24, 2023
Professional indemnity insurance for sole practitioner accountants
We’re here to help you better understand the risks you face as a chartered accountant operating a small practice or working as a sole practitioner. Professional indemnity (PI) insurance isn’t just a requirement of your professional body, but the protection you need to support your clients with confidence.
-
October 17, 2023
How would your customers respond to their data being leaked
As businesses increasingly rely on digital technologies and interconnected systems, we’re likely to see increases in cyber security breaches for SMEs. In this article, we're exploring the ways cyber insurance can protect your business should you experience a cyberattack.
-
October 02, 2023
Artificial Intelligence in Professional Services: Exploring Benefits and Managing Risks
While AI can offer numerous benefits to the professional services sector, it also comes with risks and challenges that must be carefully managed. We're exploring how you can proactively address these issues by staying informed, upskilling, ensuring data security, and navigating ethical and regulatory considerations to maximise the advantages of AI.
-
June 20, 2023
Marsh Commercial collaborates with global wholesaler Costco
Marsh Commercial is collaborating with global wholesaler Costco. Members will be able to access business-related insurances at preferential rates, including office, shop and retail, and professional indemnity, to contractors and general business insurance.
-
June 09, 2023
Do you know how to assess your professional indemnity exposure?
Professional indemnity exposure is a significant risk for UK SMEs operating in professional services sectors and often goes unnoticed or misunderstood. Take action today by assessing your exposure to prevent a nasty surprise if you need to claim.