JLT has launched a new bespoke scheme in partnership with the Australian Property Institute (API) offering tailored professional indemnity cover for valuers.
The cover, aimed at API members and called API ValCover, will see Lloyd’s of London back the scheme via Woodina Underwriting.
Bill Hogg, senior consultant at JLT Affinity, told Insurance Business, that there are several areas which differentiate the others from coverage already available in the market.
“Claim advocacy is a key feature of the service with legal support provided by Woodina’s inhouse law firm, Woodina Law Pty Ltd, and further claims support by JLT,” Hogg said. “Woodina has a dedicated claim service through Woodina Law.
Where this legal service is used a nil excess effectively applies as the client pays nothing extra for the legal service, which is a unique feature of Woodina among other insurers in the marketplace. Woodina Law is headed by Michael Wood and Stephanie Jones who have extensive experience in the defence of claims and litigation.”
Hogg noted that the market available to API members within the professional indemnity space has been contracting for some time.
“From an insurance perspective the available market for valuers has contracted considerably in the past 10 years,” Hogg continued. “In 2017 alone, three leading Lloyd’s syndicates have withdrawn, placing additional pressure on available capacity. Further consolidation is anticipated going forward as the Australian property market shows signs of levelling off from its record highs.”
For those looking for cover, Hogg noted that underwriters will still take on risk in the valuer and property space, but they are paying particular attention to claims history, type of valuation work undertaken and exposure to second tier lenders and developments.
He added that valuers are facing a variety of emerging risks in the coming year and brokers need to fully understand the risk profile of their clients to ensure they remain fully covered, particularly where contractors are concerned.
“If the cover is inadequate there is the risk the contractor could be pursued personally without appropriate insurance in place,” Hogg concluded.
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