Watch Out For These PI Pitfalls!
Buying insurance can be a tricky and stressful process, especially when you’re trying to decide what you really need for your business or short-term contract. It gets even more complicated when insurers aren’t upfront about what’s really covered or how much it’ll cost you.
At Hammond, however, we’re all about taking the panic out of PI. We don’t like making things more complicated than they need to be and we strive to keep things quick and simple.
That’s why we recently did some research into a few of the UK’s top PI insurers – to find the hidden pitfalls of their policies, prices and processes (most of which you wouldn’t notice at first glance!)
Here’s our take on what to look out for*:
Cover Limits and Restriction
- Professional Indemnity limits defaulting to an aggregate basis: If you see the word “aggregate”, that means your policy is not on the ‘any one claim’ basis which most people need. Not sure what “aggregate” or “any one claim” means? Check out our FAQ section here for the answers.
- Limited trade options: Don’t be pigeon holed into categories that aren’t necessarily appropriate for you, resulting in cover that will also be inappropriate. For example, we’ve often seen a multitude of people from consulting engineers, interim consultants and project managers being catergorised as management consultants.
- Dual or unnecessary cover: It’s easy to fall into the trap of purchasing cover that you do not need, or which you may already have. Watch out for this! Many providers force you to buy Public Liability as a bundle, causing “dual cover” issues where the Public Liability already is in place elsewhere.
- If you earn over a certain amount, keep an eye out for overpriced premiums. Earning £50k/annum may cost £200, but if your income goes beyond this the premium often more than doubles.
- Don’t forget to look out for legal costs that are often capped within aggregate cover limit. This is usually hidden in the small print, and essentially, if defending a professional indemnity claim costs £100,000, then that is £100,000 taken away from your limit of indemnity.
Laborious Quote processes
Having to answer between 15-22 questions before being able to view a premium should give you a good indication of how complicated the process will be.
Luckily, the above doesn’t apply to Hammond PI. Have a look at how we do things differently:
- A quote is displayed in as little as 8 clicks
- We have a wide range of trades available to cover what you do
- We don’t charge admin for changes to your policy
- Costs are actively reviewed to ensure they stay competitive
- All cover is always on a “any one claim” basis (in other words, not aggregate)
- You can pick and tailor the cover you need
- Your policy is competitively priced
- You’ll get immediate coverage and documentation
*These are real examples taken from some of the UK’s leading Contractor PI insurers, 2018.