Returning to Finance Experts For Surprise PII Insurance Premiums

Professional indemnity cover is getting increasingly expensive each year – especially for those in high-risk professions such as law. On average, cover costs rose 15% in 2020, 20% in 2021 and continue to rise as of 2022. 

When an existing client of ours was suddenly hit with an unexpected rise in their professional indemnity insurance cover, they sought to defer the cost by repaying on a month-by-month basis. Unfortunately, the insurer's repayment plan was less than generous and would severely hamper their cash flow. 

While the client was aware of conventional finance agreements such as business loans, they did not know if support would be available specifically for paying such a large PII fee. Rather than take out a conventional business loan to pay the premium, they wanted to find a solution that suited the insurer’s repayment plan and the client’s own business expectations. 

To make this happen, they approached our team and asked us if we could help. Thanks to our market expertise and longstanding relationships with lenders, we knew we’d be able to find a PII insurance finance solution that would let the client pay their cover costs without eating into capital or cash flow. 

Why was there a problem?

Rising PII cover costs aren’t just a problem to be ignored – for some businesses, their cover is absolutely critical to their ongoing success. Without cover, they could not continue – so insurers have leverage over businesses when setting cover costs and repayment terms. 

For the client in question, the monthly price quoted was over ten months rather than 12, and repayments were restrictive – meaning the client’s monthly profits would be severely impacted if they defaulted to the insurer’s agreement. Because the insurer is just passing the finance to their preferred lender, you have no say in your rates or terms. 

This poses a few clear problems: do you try to look elsewhere for PII cover to reduce costs in an industry that has seen sector-wide increases? Do you just take the hit to cash flow and pay for your cover in a lump sum to avoid the insurer’s monthly interest rates? Or is there another option? 

Why we were able to help

As experts in securing all manner of finance agreements for our clients, we were able to immediately identify the specific challenge this client faced and direct them to lenders who specifically support professional indemnity insurance costs. 

Not only did we look for different finance options, we were also able to leverage our contacts to find new PI cover premium quotes, which were 23% and 17% cheaper than the client’s current one. These were also offered with repayment terms that were more affordable and spread over 12 months rather than 10. 

About finance for PII insurance

The rising price of PII insurance cover is becoming a restrictive cost that can hamstring a business’ ability to generate consistent cash flow. Finance sourced from alternative lenders relieves your business from the pressure of paying up-front or being restricted to your insurer’s default monthly plan. 

When approaching the lender’s market, you need a team on your side that can help you negotiate the best rates and secure an agreement that helps fuel your business’ growth. Visit our finance for professional indemnity insurance page to learn more. 

Pay for your professional indemnity insurance cover today with Rangewell

Rangewell can help you navigate the lender’s market and negotiate deals on your behalf. Talk to our team today about your existing insurer – especially if you’ve been hit with a high quote. We’ll not only look for a finance agreement to manage that cost, but we can also often secure a cheaper PI cover quote at no cost to you. 

Don’t panic when hit with a high professional indemnity insurance premium. Get the right team on your side and finance it in a way that suits your business and goals. Click 'Apply Now' at the top of our page to get started.