Charles Hawtin, Client Service Manager at Six Clerks, considers why you might want to think twice before signing on the dotted line.
It’s that time of year when many of you may be considering your renewal terms for your PII. Charles Hawtin, Client Service Manager at Six Clerks, considers why you might want to think twice before signing on the dotted line.
Pros and Cons
It’s important to note that there can be benefits to signing-up straight away. You can save time by not having to complete a full proposal, which can be particularly attractive when time is quite literally money. Accepting renewal terms will also give you the peace of mind that everything is in place and you won’t have the uncertainty that comes with renewing at the last minute.
However, there are downsides.
Any offer you receive is likely to be based on the information provided for a previous renewal and, if you have stayed with the same insurer for a number of years, it could mean that the information used to calculate your quote is 3 or 4 years old. Not only will this mean that you are not presenting the most up-to-date information about your firm and your claims experience but it could also have an adverse effect on your premium rates as you may not be benefiting from current market levels.
Benchmark to make a more informed decision
When purchasing insurance most of us will use a comparison site to benchmark our renewal terms. By comparing terms in this way we are able to quickly and easily see a cross-section of the insurance market which means that we are in a stronger position to make more informed decisions about our renewal terms. Having benchmarked our renewal terms we can reassure ourselves that they are still competitive and renew safe in this knowledge, or we can look elsewhere in the hope of achieving greater benefits, including costs savings, by switching providers.
Six Clerks, in partnership with the Law Society, has developed an online quoting system specifically for 1-4 partner firms which provides an indicative quote based on the terms of your renewal offer. The details can be entered into a short online form, taking no more than five minutes to complete, and within less than 24 hours you receive an indicative quote to compare and benchmark the offer received from your current provider.
The purpose of the indicative quote is to provide you with an early opportunity as to whether it might be in your best interest to approach the market for an alternative PII opinion.
Take your time
When you receive your renewal terms take some time to consider the following:
Has your practice changed in terms of size and/or fee income?
Has your claims history improved?
Have you received an objective update about the state of the PI insurance market?
Who have you approached for a quote – one broker (who may be tied to a limited number of providers) or a number of providers?
When was the last time you sought an alternative opinion for your PI insurance requirements?
Remember: with a continued soft market there is competition out there and deals can be done.