Professional indemnity insurance, also commonly known as professional liability insurance (PI insurance), is a specific type of insurance that covers you and your business from legal costs. As well as covering these costs, it also may cover any expenses incurred during your defence, and damages that are awarded against you.
This type of insurance is essential, as it covers you in situations where clients claim you have provided an inadequate service which has caused them to lose money. Because of its importance, and the high sums associated with legal fees, professional indemnity insurance can be expensive. Our experts have suggested a number of ways that you can reduce this cost, giving you more money to invest back into your business.
Get multiple quotes
While this may seem obvious, it is surprising how many companies will find one provider and stick with it. While this may save them the hassle of comparing services and quotes, they may be losing out on some substantial savings. Equally, it is worth discussing prices with your brokers, and attempting to negotiate a lower price, as most companies would rather accept a slightly lower figure than lose a client completely.
Meet with your broker
If you have the opportunity, then always meet with your broker to discuss your business and your policy. By forging a personal relationship, the broker is likely to understand how you operate, meaning they will be more inclined to reduce premiums on certain aspects of your policy. It is a well established psychological fact that you are more likely to make concessions, or make things slightly cheaper, for people you have built a solid working relationship with.
Be flexible with your cover
It is important to know exactly what cover you are receiving for the price quoted, and compare the level of cover against the likelihood of you needing it. Insurance premiums change with different levels of cover, so it may be possible to remove various bits of cover that you no longer need as your business model changes. By highlighting to your broker that budget is a high priority, they will be able to assist you in cutting costs without compromising your cover.