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Businessman reviewing insurance documents during COVID-19

Maintaining your professional indemnity insurance protection during the pandemic

The necessary steps the government has taken to slow the spread of the coronavirus outbreak in the UK has undoubtedly had its effect on the business community, with many firms suffering reduced income and facing financial uncertainty.

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.