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Keeping Professional Indemnity Costs Down

The professional indemnity insurance market in general has shown positive signs of increased competition and rate stabilisation after several years of significant increases. This renewed optimism comes as some insurers who had exited the market have re-entered and after a period where underwriters took a more cautious approach towards the sector.

However, businesses continue to face cost pressures from economic uncertainty, inflation, rising interest rates and threats of recession. This is forcing a focus on streamlining operations and prioritising cashflow. Smaller firms and sole traders in particular are feeling squeezed.

In this environment, keeping professional indemnity insurance costs down remains important.

Some tips for firms going through renewal include:

  • Start the renewal process early, especially if higher risk work is performed. This allows more time for a compelling risk presentation.

  • Review policy wordings to check for overlaps or gaps in coverage between policies.

  • Present information clearly and pre-empt potential concerns. Supply mitigating details upfront.

  • Highlight risk management measures taken, like training, cyber security precautions and liability clauses with clients.

  • Consider raising the policy excess and paying premiums upfront rather than in installments to reduce costs.

  • Avoid late renewals. Inform brokers of potential issues as early as possible.

  • Carefully assess the level of cover needed, negotiating higher limits where work could lead to multiple claims from one cause.

While the professional indemnity insurance market outlook is more positive, economic challenges mean firms should still take steps to keep insurance costs in check at renewal. But this should be balanced with ensuring adequate protection.


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