|
CURRENT SITUATION
Most professional people and practices purchase their cover requirements on one
criteria only, that of price. No one doubts the business discipline of every
purchaser in wanting to keep costs down to a minimum, as insurance premiums are
a major part of the overheads. Obtaining cover for the professional risk of the
individual or the partnership is not the same as purchasing motor insurance
protection.
The
crucial test of any product is whether it performs when the need arises. Today,
the professional person lives in an ever increasing demanding environment with
the application of the law being modified by the Court of Appeal and, in some
areas, by the European Union. If you are not a legal practice it is unlikely
that you will notice changes unless your insurance broker draws your attention
to them or you have advice from a professional information centre.
|
|
So
what can be done to minimise your risk for the benefit of your practice and to
achieve a reduction in the premium?
RISK
MANAGEMENT
How often do we hear that expression being pronounced by the insurance industry
today? To many people they see no benefit to their businesses but it can work
where there is a good understanding between the client and his insurance broker.
There are, however, two caveats to this scenario. The first is that not all
local insurance brokers have an in-depth knowledge of professional indemnity
cover and the second is that many brokers do not have agencies with the
specialist underwriters and rely on the larger London city broker to place the
cover for them.
|
