Avoiding Unintended Consequences
A soft Professional Indemnity market means that insureds will often consider changing insurers. A move can make sense but needs to be handled carefully.
Insureds operating under tight margins may wish to change insurers. Experienced brokers will appreciate that each move can make sense and be a good thing on its own merits, but will also know that change may lead to the risk of problems emerging.
The main risk of course concerns the notification and, perhaps to a lesser extent, disclosure of circumstances at renewal. The risks increase where there is a change of insurer. Unclear notifications may result in a risk that in the event of a claim, there is a prolonger dispute between different insurers who may face significant claims disclosure.
To read the full article in BIBA’s Brokers’ Guide click here.