Time is nearly upon us for firms to begin their professional indemnity insurance (PII) renewals, with the usual ‘renewal season’ spanning the next three months.
However, with the unprecedented times that we’ve experience in 2020, providing our readers with some information on the PII market at the moment seemed fitting.
Edward Donne from Howdens Insurance Brokers Limited, specialists in Professional Indemnity Insurance, took some time to speak to Chris Harris at Today’s Conveyancer, giving some insights into the PII market.
Edward looks after Howden’s Licensed Conveyancer clients, helping them to get the cover they need in a changing market. In the interview he shares his advice on how to reassure underwriters, and what steps firms need to make to help with their renewal.
What is happening in the PII market at the moment?
20%-30% of licensed conveyancers have seen an increase in their renewals. Although many of these are large firms, there are quite a few smaller firms who as a result of the increase aren’t buying excess levels of cover which relate to the solicitors’ market.
What things should you consider when filling out your application?
“You want to sell the best possible story of your firm that you can.”
– Edward Donne
Naturally, as with all insurances the renewal dates creep up on us, with many solicitors looking to renew next month.
Things to consider include typing up your renewal documents to ensure your application is easy to read, and writing a covering letter outlining all the positive things about your firm to your underwriter.
What impact will cashflow have on this year’s renewal?
Cashflow for firms in 2020, is obviously slightly different compared to what it would be in any normal year. Edward takes the time to explain the importance of ensuring you can finance your renewal.
“Cash is king at the moment. Have a think about how you’re going to pay your premium and take a look at the options available to you.”
– Edward Donne
What types of increases have you seen in excess levels, which you’ve previously described as dramatic?
What are the risks posed to firms who are making people redundant and others who are hiring them?
“Insurers want to be sure you’re equipped to carry the work out that is coming your way.”
– Edward Donne
Criminals can take advantage of those who are under pressure, and with the legal sector being the jewel in the crown for them, insurers can get a little worried about this. So, putting steps in place to ensure that you’ve covered all of your risk areas will help to reassure your insurer. Evidencing what you’re doing about fraud and protecting your people is key.
With insurance renewal season about to get underway, have you noticed a surge in people contacting you asking for advice?
For more information about the services provided by Howden and to get in touch with Edward and his team regarding any advice please visit the Howden website.
