Crisis in the cost of professional indemnity insurance

A news report in the last few days issued by a well known professional indemnity insurance spokesperson via an online news column stated that there is an increase in pressure on the cost of professional indemnity insurance as the UK and world financial forecasts are not looking good. The specific worry is centred around the risk factors as these have for many years been the biggest issue and continue to be so. The spokesperson emphasised that the greatest risk for businesses is assessing their needs with regard to the extent of risk. If the risk factors are not that evident then businesses will dismiss the necessity to take out PI insurance.

The spokesperson then highlighted an important question that necessitates a concrete answer and that is “how are staff who assess their businesses for professional indemnity insurance going to behave in relation to the elevation of prices in this industry?”  An obvious response to this scenario is to spend more time on shopping around online to find the best quotes on offer and then study what would be covered by the quotes that are offered in the different price ranges. Price squeezing is not unusual in the business sector and the consumer simply has to be more astute when deciding how to spend the available budget.

He proceeded to identify a further concern and that is the use value of the goods when they are actually delivered. The liability insurance companies are not delivering the same quality of goods for the money paid as they have in the past. The price might seem attractive but the worth of the insurance it is not so great. There are some fears that businesses who do not look in the small print of their policy documents might find they are insufficiently covered, which would be a heavy cost burden if they happened to need the insurance.

Whatever industry you are in, the recommended PI insurance company should be checked along with other ones that can be found online through an internet search in order to get the best value for your available funds.

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