In recent years, the Professional Indemnity (PI) insurance market has experienced significant challenges, with rising premiums and increasingly restrictive coverage. However, the situation is improving, and core market conditions are gradually easing.
This presents a valuable opportunity for design studios to secure more favourable terms. To make the most of these improved conditions, it is important to approach your renewal strategically. Here are some essential tips to help ensure a smooth and successful PI insurance renewal:
Start the Process Early
Initiating the renewal process early is essential to prevent rushed decisions and ensure all bases are covered. The timeline for renewal depends on the size of your studio and the complexity of the design work you undertake, typically:
for studios with a turnover of up to £1 million, start at least 4 weeks before your policy expires.
for studios with a turnover between £1 million and £5 million, begin the process 6 weeks prior to renewal.
for studios with a turnover exceeding £5 million, plan ahead and begin as early as 12 weeks in advance.
Have Your Paperwork in Order
While insurers and underwriters are gradually simplifying their processes, it is still vital to have all the required forms and questionnaires prepared in advance.
Collaborate closely with your broker to ensure you gather all necessary paperwork early on, avoiding any last-minute additions that could cause delays in your renewal. Having everything ready upfront will help streamline the process.
Submit Forms Electronically
Insurers and underwriters generally prefer clear, typed forms over handwritten submissions, as manual entries can result in errors or misunderstandings. To ensure clarity and professionalism, always complete and submit your forms electronically.
Provide Accurate Financial Data of your Studio
Accuracy is key reporting your studios financials. Even minor rounding errors in turnover or work percentages can affect your premium.
Insurers rely on these figures to calculate your costs, and a small error (such as a 2% discrepancy in the wrong category) could lead to a significant increase in your premium. Ensure all financial data is accurate and double-check for any potential mistakes.
Claims Information
If your studio has experienced any claims, it’s essential to provide the most current details. Don’t assume your broker already has all the necessary information. They will need comprehensive claims reports and summaries to accurately present your case to insurers.
Be sure to include any lessons learned from past incidents, as well as any procedural improvements your studio has implemented to reduce future risks. This transparency can help position your studio more favourably during the renewal process.
Include a Covering Letter
A covering letter offers a chance to present your studio beyond the standard forms. It is an opportunity to highlight your studio’s expertise and future business plans including upcoming projects. By providing this additional context, you can help your broker advocate more effectively during negotiations with insurers.
Consider Core PI Brokers
Make sure your broker is well versed in the market, has access to a wide range of insurers, and can negotiate effectively. If you are not satisfied with your current broker or want an alternative quote, consider Core PI Brokers Courtprice, specialists in professional indemnity insurance and general insurance.
Switching brokers is easy, and their expertise can help you secure competitive rates, full market access, and tailored cover.
Complete Core PI’s quick and user-friendly form, featuring dropdowns and slider bars, taking less than 5 minutes. The form collects key details about your past projects and Partner experience, helping create a complete studio profile before submission to underwriters.