Small premium saving has little value if cover is then withdrawn in future years. Use the knowledge of your broker to understand your specific insurer’s current risk appetite and attitude.
Prepare a good-quality PII application
A good-quality PII application says a lot about your business and provides the first impression you will make on the insurer.
Ideally your broker is presenting your business directly to the insurer. If a secondary broker is involved it is imperative that your application sets the picture, as the other broker is unlikely to know you.
Think of your application pack as an information memorandum for your business, setting out why your business is a good risk to insure.
Here are some tips for presenting you application in the best light:
1. Plan well in advance
Do not leave it to the last minute, allow enough time for the broker to present, and the insurer to consider, the business's risks.
Plan to start the application or renewal process well in advance of the renewal date. Two to three months in advance would be recommended.
2. Presentation matters
An underwriter may only have a few minutes to decide on whether to offer terms or not.
Having a well-packaged and presented application will help to give a favourable first impression.
We often hear from underwriters that they will use this as a benchmark as to the level of care and attention that a business may apply to its own records or the client experience.
If your business has taken time to check, prepare and present the content appropriately, this is likely to be an indicator of a business that has the right kind of culture towards key issues such as risk management.
We recommend using a covering letter to bring out the key elements of the company that supports the fact that your business is a good risk to take on.
It could include, for example:
- A brief history of your business;
- The types of clients your business aims to work with and how your source clients;
- A summary of the services your business provides;
- A summary of any claims history and lessons have you learned from any past claims;
- An overview of your business's risk management structure;
- Details of any higher risk areas of business; and
- Any future business changes planned.
This summary information should enable an underwriter to build a favourable picture of your company, before looking at the detail in the application itself.
It is important, however, to keep the covering letter clear and concise. We suggest no more than two pages long.
Show that you are taking the application seriously
Your application or renewal should be overseen and signed-off by a member of your senior management team, such as a director or partner in the business.
Make sure relevant supporting information is up to date and available
Supplementary information to support your application will enable the insurer to look under the bonnet of your application.
Make sure you have relevant and up-to-date information prepared and ready to support your application.
Conclusion
In a limited PII market, it pays to get your business into the best shape and prepare a good-quality application.
Businesses that are able to show how they are operating at the highest standards will be most likely to secure competitive PII cover.
