PI Insurance: Balancing Price, Service and Coverage
Most insurance adverts on television these days sadly focus on one thing: price!
As business people we know, that the vast majority of successful market leading businesses are rarely the cheapest. Kellogg’s Corn Flakes outsells every other brand ten to one, yet it is the most expensive brand?
Ask yourself, do you wear the cheapest clothes you could buy, do you drive the cheapest car possible, and do you have the cheapest laptop? Considering an entrepreneur’s business is often their lifeblood and something they have proudly worked hard to build up, why would you go for the cheapest insurance?
Claims or lack of them plays a big part. If you have not had a claim within your business for many years, then why should you buy insurance, or expensive insurance at that? It is a fair point.
My house has never burnt down, but I am not taking any chances.
Rock climbers don’t plan to use their safety rope, but you can bet the one they do use is more than up to the job. Not sure I would buy ‘budget’ safety rope? “No frills safety net” is not an advertisement you are likely to see anytime soon.
We are becoming more litigious as a nation and with easier access to low-cost lawyers, unhappy clients are more likely to bring a claim now than ever before. Just because claims have not occurred in the past, don’t believe they won’t happen in the future.
We speak to clients who have just received a claim and it is never a pleasant experience for them. We find that offering a direct line to your insurance account manager, a knowledgeable, friendly and supportive professional, is of huge value when the worst happens. Speaking to someone who knows you and your business is very reassuring during this upsetting time.
Low cost Internet policies rarely offer the same service. Expect to be dealt with by a call centre, speak to a different person every time you call. They may have to follow call scripts and only provide rigid answers. If you need support quickly, or need to speak to a decision maker you may not get the service you need.
The internet offers cheap and convenient policies, however, not all offer the same level of cover and in the absence of any help, you need to check it yourself. How much time will this take and how much is your time worth? Will it be worth the saving and how confident are you picking your way through pages of policy wordings?
Every business is different. We regularly speak to clients about their business and not all businesses can be classified using an internet quote form. Sometimes it’s easier to explain to someone about the work you do, and get the assurance you are fully covered. Some of our clients do work in the USA, and were unable to get cover online.
We were able to cover all the work in the USA and were still able to offer a premium comparable to what was available online.
Not all insurers are equal. Some offer comprehensive coverage and secure financial rating. Some insurers are unrated and cannot provide any independent financial rating. It is unknown how well financially capitalised they are to pay any claims. From time to time, they can and do go bust, leaving policyholders with no cover and no return of premium.
ProfilePI arranges policies on behalf of A+ (Excellent) rated insurers and all policies are placed through Lloyd’s of London offering a double-lock of security with every policy.
All businesses need to budget and price is an important factor in any commercial decision.
Remember to look at the components of the price, not just the total. Some insurance providers will have additional fees and charges for monthly direct debits. They may also make additional admin charges for mid-term changes to the policy. The low cost price that tempted you in, can actually cost you more over the lifetime of the policy.
ProfilePI aims to fill the gap between low cost internet policies offering low prices but very little support – and traditional insurance brokers who offer a full compliment of services but can be expensive.
ProfilePI clients typically need support, a competitive price and solid cover. That is exactly what we offer. In many cases our policies are lower cost than Internet prices, but with all the support you would expect from a traditional broker.
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