Dealing with brokers and insurers
Dealing with brokers and insurers

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

  • Dealing with brokers and insurers
  • Questions to ask your broker
  • Insurers’ financial strength: rating and capitalisation
  • Benchmarking
  • Aggregation
  • Meeting insurers
  • What insurers like to see
  • Good claims experience
  • Financial management
  • Liability caps/terms of business
  • More...

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

Questions to ask your broker

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

  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 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available either from your broker or in the Law Society’s Guide to insurers' financial security (which is now somewhat out of date).

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.


Brokers will give an analysis of how your firm’s risk compares with others, but such benchmarking is generally based on gross turnover only, without considering composition, competitors or geography. If you have researched your competition, ask your broker whether it might be

Related documents:

Popular documents