It is only really in recent months that the professional indemnity (PI) insurance market has started to slowly edge out of a long period of correction, reflecting stabilization in claims activity. Operating on the front lines of this quickly evolving market, brokers are increasingly questioning how they can help legal clients obtain this crucial coverage, and in a recent discussion with IB Talk, James Graham, director of skilled indemnity at Travelers Europe, shared his top tips.
Offering advice on how insureds and brokers can make sure their proposal form stands in the right way, he reported how important it is to take care of this document to ensure it is legible. Brokers should help their clients indicate their approach to risk, he said, and also make every effort to see the submission is provided in good time, ideally two months in advance of renewal.
“Ensure that any additional information that is provided is stocked in a clear and concise format,” he said. “It’s important to try and tie back a firm’s approach to risk to some of the hot topics around inflation, well-being, sanctions, or even new cyber risks. The mistakes I’ve seen are really simple administrative mistakes, for example, not fully completing a proposal form or not providing extra information where it is requested.”
Touching on some of the key errors he sees made with proposal forms, Graham said the majority of these tend to be quite simple administrative mistakes, from not fully completing a proposal form to not providing additional information as requested. Providing a proposal form at the last minute puts clients at a disadvantage as they don’t have the time required to review their shapes, and fully assess their acceptable risks and exposures.
The role of the broker, he said, is, therefore, to mitigate these issues by proofreading clients’ proposals and offering them examples of what a well-put-together submission looks like.
“Also, most dealers are fully aware of our appetite,” he said. “So, it’s about making sure the submissions that are provided fit with our appetite and that those that may be borderline have the additional information required to help us understand their business better. The other key information to provide is up-to-date financials and claims information, plus anything else they feel could get their approach to risk and the type of firm they are across to us better.”