With COVID-19 having an impact on an already contracting professional indemnity market, Kevin Sandom outlines why the cheapest quote may not always be the best and how ITIC provides far more than just insurance cover for members…
Sometimes ITIC is asked ‘’we have a cheaper quote, can you beat it?’’ or told ‘’sorry, but there is a cheaper alternative.”
In life, we all look after our money, whether that be our own personal finances or those related to our businesses. Cost plays a major part of any purchase and there may be a limited budget but in all honesty, is the cheapest option always the best? In reality, the cheaper option can turn out to be the most expensive one, particularly with insurance!
Yes, brokers have a duty to get the best deal for their client, but that does not necessarily mean the cheapest or for that matter the most expensive. As an experienced and specialist professional indemnity insurer in the marine and transport sector, we fully understand our member’s needs. We are there for the challenging times, as well as the good times, and have been since 1925.
ITIC is very strong financially, The Board of ITIC review the finances regularly and look to award a continuity credit to those members who renew. As such ITIC has been able to provide credits for the last 26 years. The credits reduce the underlying cost to your client, but we still pay commission to you on the gross premium. Accordingly the generosity of the ITIC Board of Directors does not result in a lower commission for you.
The true cost of insurance, sadly, only ever really matters when a claim arises. Whether a mistake did happen (negligence) or whether the member has just been caught in the cross fire in a dispute between clients, ITIC’s cover is not designed to just see things purely as ‘’black or white’’ (covered or not covered, as some policies would say). ITIC’s cover is there to make sure that the member has the best possible protection available, not just to cover the costs of the defence of the claim and/ or the claim itself, but to protect the member’s commercial relationship with their principal. Reputation can mean everything! We also pride ourselves in our loss prevention advice whether that be a circular notifying members of an immediate issue, or the Claims Review or Wire giving information on claims recently paid.
Over the past year the position of other insurers within the professional indemnity sector and those in the Lloyd’s market have started to harden. Some insurers have been declining to renew certain risks, or pushing up premiums to reflect the hardening market. ITIC continues to be consistent in its approach to underwriting and claims. Even more so now!
We have sent circulars to various sectors of the market advising them of risks associated with the current pandemic and how to remain vigilant. A dedicated COVID-19 information and resources webpage has been created, to provide all members with advice on the topic. More information can be found at the end of this Wire.