At Simcox Brokers, we recently had the opportunity to work with an engineering firm that needed a far more comprehensive professional indemnity insurance policy. Despite their involvement in large and complex projects with high contract values, they were previously relying on a basic online policy. This online policy was purchased on a non-advisory basis and, on review, Simcox Brokers found the policy was not fit for purpose, where the client was woefully under covered and had not reviewed their insurance programme for several years.
As a result, should a claim arise, they could have been left exposed. Fortunately, in this instance, we were able to step in and take the time needed to understand their business and associated risks and support them with their application to tailor a policy specific to their individual needs at a competitive premium. Furthermore, the business was also contractually required to have a £10m limit of indemnity in place. With the first insurer only being able to offer a maximum £5m limit of indemnity we successfully sourced a second insurer who could offer an additional £5m limit to reach the limit they required.
In this instance, it was fortunate that we were able to secure the proper coverage for them before they needed it. However, their situation is not uncommon. Many businesses fall into the price comparison trap and choose to buy off the shelf online insurance products similar to buying house or car insurance, where they just see it is a transactional tick box exercise and need the document to trade. However, by purchasing insurance online without expert guidance and the advice from an experienced insurance broker, you're essentially buying a policy based on basic information. In turn, this could lead to significant gaps in coverage, leaving you exposed in the event of a claim. Over the years we have seen too many businesses fall into the price comparison online quote trap, only to realise too late that their policy is not worth the paper it's written on or provides them with the coverage they need.
Another common mistake is auto renewing the same policy each year without updating the Statement of Fact with information about the businesses turnover, number of employees, sectors worked in, or work carried out. This can result in policies that are no longer relevant or adequate for the business. By not updating and disclosing information correctly the business also runs the risk of their claim being avoided for non-disclosure of material facts.
At Simcox Brokers, we specialise in helping businesses transition from these basic online policies into bespoke insurance policies that protect their businesses and help them manage their risks. Our experts take the time to understand your business's unique needs and risks, providing personalised guidance and recommendations to ensure you have the right coverage and are paying the correct premium.
But it's not just about selling the policy - our commitment extends beyond that. We remain dedicated to supporting our clients throughout the claims process and are on hand to help them better manage and fully understand their key risks.
Don't take unnecessary risks with your business and rush the process - choose a broker who offers a personal service, will take the time to understand your unique needs, provide customised insurance solutions, check all the small print with you and perhaps most importantly be there to support you in the unfortunate event of a claim.
Find out more about the solutions we can offer: Professional Indemnity Insurance for Engineers
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