While insurance brokers in the UK are busy fighting their clients’ corners amid a deluge of claims during these particularly strange times, the British Insurance Brokers’ Association (BIBA) is reminding intermediaries not to forget about their own insurance policies.
In BIBA’s view, there has never been a more crucial time for brokers to consider several factors when purchasing their professional indemnity (PI) insurance to ensure they are comprehensively protected against potential errors and omissions claims.
“The market has hardened, and it is becoming more difficult to place brokers’ PI,” noted the trade body. “Some markets have stopped writing new business and others are excluding COVID-19.”
In its guidance for members, BIBA cited the importance of starting early, using specialist PI brokers, checking insurers’ financial stability, examining the benefits of maintaining insurer consistency, and considering all liabilities.
BIBA said: “Leaving it late could impact terms from underwriters. Consider starting six weeks before for smaller brokers and eight to 12 weeks before for larger brokers.
“Consider specialist brokers who can use their expertise to properly advise and present to a reputable market.”
In addition, the association advised against underwriter duplication and urged brokers to seriously consider the risk of accepting any policy that does not respond to coronavirus-related claims. It also reminded the industry that the Financial Conduct Authority minimum sums insured are going to increase on June 12.
