A good broker will provide independent, professional advice and assistance in preparing your submission to an insurer. Different insurers will underwrite different types of firms. Key determinant factors for the underwriter will be turnover, number of partners, and the volume of particular kinds of work.

To obtain a quotation, it will be necessary to complete a lengthy common proposal form which will be reviewed by an experienced underwriter.

The common proposal form is a representation of the quality of your practice to the insurance market. It is worth spending some time making sure that is completed well and looks professional. An underwriter will be using it to assess your firm.

The underwriter may also look at your website and your financial information. Insurers will want to know about the financial viability of your practice. If you spend time and money on risk management, make sure to inform your insurer so that this can be reflected in your premium.

What questions should I ask when making enquiries with a broker?

• Which insurers do you access?
• How quickly can you submit my application and get an answer?
• What fees do you charge?
• If I receive an offer, how long will it remain open for acceptance?
• Do you offer low cost finance to fund the premium?

What concerns has the coronavirus pandemic and lockdown raised for insurers?

• It is likely that insurers will be assessing business continuity and preparedness for any further Covid-19 (or other) disruptions more rigorously.
• In order to check that firms have appropriate monitoring and management systems in place, insurers may ask for additional details about how the practice operates.

Practical guidance and insight from a broker

A recent Small Practice Information Session included practical guidance, and answers to member questions, from a broker.

• Watch Applying for Professional Indemnity Insurance (34:05)

eNewsletters

This article originally appeared in the September 2020 member eZine. For more information, and to subscribe, visit eNewsletters.