Seven reasons why you should use an insurance broker

If you need professional indemnity insurance (PII), then you’re going to need an insurance broker. Particularly given the challenging professional indemnity market we’re currently experiencing, where premiums are becoming more expensive and higher risk work, such as probate and tax, is getting increasingly difficult to cover. A broker provides advice and explains clearly what your insurance covers, and what is not covered. They also act for the customer and have a legal duty of care in the advice and products provided. So, rest assured you are in safe hands.

Top 7 benefits of using a broker:

  1. A broker can use their expert knowledge to highlight areas of cover that may not be considered.
  2. A broker can ensure you are not paying for more cover than you need and ensure you receive excellent service.
  3. A broker can shop around on your behalf to help find you the cover you need, from every day book-keeping to higher risk work that insurers are increasingly shying away from in the current challenging market.
  4. After a policy is sold, a broker can continue performing valuable day-to-day services, monitoring the adequacy of coverage limits and policy terms as market conditions fluctuate.
  5. In the event of a claim, the broker can act on the business’ behalf to achieve settlement.
  6. A broker can ensure your business is presented to insurers in the correct way, which allows insurers to offer the most appropriate products for a fair price.
  7. Professional indemnity policies require you to notify your insurers if you become aware of a claim against you in relation to your professional activities, or you become aware of a circumstance, which may give rise to a claim. A broker can provide valuable advice and guidance as to whether you should notify a claim or circumstance to insurers.

Choosing the right broker

Professional indemnity insurance is a specialist insurance and it is important to find a broker that specialises in this field. There are many general brokers that offer professional indemnity insurance, but their access to the market can be limited and they may not have the direct relationship with insurers that is key for negotiating the right cover and price. Equally, there are plenty of online providers that sell PII direct to customers, however you cannot guarantee that their cover will give you the level of protection that’s needed for the type of work you carry out. 

A specialist broker will know the right insurers to approach rather than flooding the market, which can have a negative impact on how the insurance market views your business. They will also know how to present your business clearly with a view to getting the right cover at the right price.

The sole reason for buying insurance is to ensure claims are paid, if and when they arise. If your business faces a claim for professional negligence it can be a time consuming, expensive and confusing process, and the relationship between you and your broker is integral to getting the claim dealt with efficiently and effectively.

Selecting the right insurer

It is important to check the financial strength of an insurer before purchasing your policy and your broker should be able to advise you on this. Whilst premium is an important factor, the financial strength of an insurer and hence their ability to pay claims should the need arise, should be a key part of the decision making process.

Making a decision

When it comes to protecting your livelihood, our advice is to entrust it to a broker that specialises in professional indemnity insurance. Firstly, for their expertise, access to the right insurers, and support, and secondly for the peace of mind and reassurance it will give you.