Dealing with brokers and insurers
Dealing with brokers and insurers

The following Practice Compliance guidance note provides comprehensive and up to date legal information covering:

  • Dealing with brokers and insurers
  • Key terms
  • Questions to ask your broker
  • What insurers like to see
  • Other steps you can take to impress insurers

This Practice Note explains how you can deal with your professional indemnity insurance (PII) brokers and underwriters, including:

  1. questions to ask your broker

  2. meeting insurers

  3. what insurers like to see in firms they are insuring, and

  4. other steps you can take to impress the insurers

Key terms

PII professional indemnity insurance
SRA Solicitors Regulation Authority

Questions to ask your broker

The sorts of enquiries you should be making of your PII broker include in relation to:

  1. insurers’ financial strength—rating and capitalisation

  2. benchmarking

  3. aggregation

  4. meeting with insurers

Insurers’ financial strength: rating and capitalisation

One of the best indications of financial strength is a favourable grade from an independent rating agency. Participating insurers are now required to disclose both whether they are rated and their rating’s provider. You should use this information when comparing PII quotes. Information about insurers and their ratings is available either from your broker or in the Law Society’s Guide to insurers' financial security. Also, ask your broker how much capital an insurer has. A policy from an insurer with 9,000 firms on risk but just £6m in funds with which to pay claims is unlikely to prove to be a good investment.

Benchmarking

Brokers will give