• Keep detailed records and documentation of all client interactions and advice given. It sounds obvious, but it’s one of the most important things you can do - these records can be crucial in defending against a claim. 6. Seek professional advice: • Consult with insurance brokers who specialise in PI insurance for mortgage firms. They can provide tailored advice and help you find the best policy for your needs, as well as assist in negotiating optimal terms and premiums. • Make sure your broker works with insurers that have long-standing experience in underwriting mortgage firms and who aren’t likely to pull out of the market. Following these simple steps can make a significant difference when it matters most. As well knowing how to effectively manage your PI, it’s just as important to know what to watch out for. Here we cover off some of the more common pitfalls we see day-to-day in our role as a PI insurance broker. What to watch out for 1. Underestimating coverage needs: • One of the most frequent mistakes we see is underestimating the level of coverage you need. Always err on the side of caution and opt for higher coverage if in doubt - it will help you to avoid any significant financial exposure that may come with inadequate cover. 2. Overlooking the fine print: • It can be tempting to gloss over the fine print – especially when you’re busy. But understanding exactly what’s covered and what’s excluded can mean the difference between a claim being accepted and a claim being denied. • Your broker is there to help clarify any ambiguous terms – lean on them for advice and guidance to make sure you know what’s what. 3. Not disclosing all relevant information: • Non-disclosure of material facts can void your policy or lead to claim rejections. Always provide comprehensive and accurate information when applying for or renewing your insurance. 09 SUMMER MORTGAGE NEWSLETTER 4. Delaying claims notification: • Any delays in notifying your insurer of a potential claim can complicate the claims process. • Quick notification is central to a smooth and successful claim resolution. 5. Overlooking the importance of run off insurance: • If you retire or leave the industry, claims can still arise from past activities. Run off cover makes sure you stay protected after you stop operations – providing you with much needed peace of mind. • Discuss run off cover options with your broker if and when you plan to exit your business. Securing and maintaining effective PI insurance doesn’t have to be complicated or take up a lot of time. By following the above advice, it will help to ensure the long-term stability and reputation of your business – as well as give you confidence that you’re fully protected. By understanding your risks, choosing the right coverage, avoiding some common mistakes, and regularly reviewing your policy, you can ensure your PI insurance works hard for you. Get in touch As Paradigm’s Strategic Partner for PI, Marsh Commercial is committed to making sure you have access to competitive PI insurance tailored to your specific needs. If you need any assistance reviewing your current policy or would like to discuss your PI requirements, please speak to one of our experienced advisers by calling 0330 818 7676 or email [email protected]. Marshcommercial.co.uk/paradigm This is a marketing communication. Paradigm Partners Ltd is an Introducer Appointed Representative of Marsh Ltd and Marsh Commercial is a trading name of Marsh Ltd. Marsh Ltd is authorised and regulated by the Financial Conduct Authority (FCA) for General Insurance Distribution and Credit Broking (Firm Reference Number 307511). Copyright 2024. Registered in England and Wales, Number: 1507274. Registered office: 1 Tower Place West, Tower Place, London EC3R 5BU.
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