Advisory Firm With Professional Standards Limit

An advisory and accounting firm approached Tank Insurance needing Professional Indemnity insurance for accountants that aligned with its professional standards obligations.

The firm expected annual revenue of roughly $600,000 to $650,000 and needed a limit structure of at least $2 million costs-in-addition or $2.5 million costs-inclusive. That made the placement more technical than a simple lowest-premium comparison.

We presented the risk to a panel of professional indemnity markets and focused the submission on the firm's actual advisory work, expected revenue and required limit structure.

The key was giving underwriters enough context to understand the exposure and the compliance driver behind the requested limit. For accounting and advisory firms, the difference between costs-inclusive and costs-in-addition cover can matter when a professional body or client contract sets the insurance requirement.

Not every insurer could support the risk or the requested limit. Some markets declined on occupation or could not offer the required structure. Other terms were constrained by service type or valuation exposure.

We secured AIG terms with a $2.5 million costs-inclusive Professional Indemnity limit. The total quoted amount recorded for the placement was around $4,800.

The result gave the firm a PI structure aligned with its professional standards position, after other markets either declined, referred or could not meet the required limit approach.

This is a useful case for accounting and advisory firms whose insurance requirement is driven by more than a generic PI minimum. Where the obligation is specific, the wording and limit structure need to be checked before the policy is bound.