Not so dull anymore??
Let’s face it, Insurance is not the most exciting of topics, BUT imagine if there was a way that it could generate new sales and help you grow your business?!
Business Insurance is generally regarded as solely a business cost and associated with protection and peace of mind.
However, by flipping things entirely on their head, we’re going to show you how some clients have used their Professional Indemnity Insurance to increase conversion rates and generate income.
Stopped yawning yet? Can you keep a secret? Let us show you how……
First things first, what exactly is Professional Indemnity Insurance?
Even the term itself can create confusion, in the US they call in Errors and Omissions (E&O) Insurance, or it can be referred to as PII Insurance, Professional Liability Insurance, or Indemnity Insurance – we’re sure there’s more too.
Still, it’s all the same core cover!
PI Insurance provides cover for legal costs and expenses if you (or someone in your employment) are alleged, in the course of your job (profession), to have provided either inadequate advice or services to a client.
The policy will pay costs in terms of defending a claim. Any compensation due to your client and/or rectification costs to remedy the error.
Here are some examples to bring things to life
- Accountant providing tax advice to a client – Client is investigated by Inland Revenue and receives a fine for tax evasion and accuses the accountant of negligence. The Accountants PI policy will provide indemnity and defend the claim and pick-up any resulting costs.
- A marketing company is designing some magazine advertising for a client – Due to a tight deadline they send to copy, and the ad is produced, but it is then spotted that a digit is wrong in the clients’ telephone number. Client alleges that this has cost them a significant business opportunity as well as reputation damage and sues the Marketing Company for lost revenue.
- An Architect draws up a set of plans for a house re-build for a local property letting company – Mid-way through the project, the building inspector advises the client that the head-height in the loft extension does not meet regulations and needs to be changed. The resultant impact is a 6-week delay to the build and client alleges that the fault falls at the architects’ feet for lost revenue and additional labour charges.
As a “Professional” or expert in your field, the law deems that you have an increased duty of care to your clients’ for your professional advice or services which you provide, as such, they have the right of legal challenge should things go wrong.
Make your Insurance Policy work for your business
Most most people see insurance as a necessary evil or grudge purchase, and we all have the temptation to find a cheap professional indemnity insurance policy.
However, buying the right policy can work for you in winning new business as well as keeping your existing clients.
When tendering for new work or providing quotations, you can promote the fact that you have the appropriate insurance.
If it’s with a big brand name such as AXA, Hiscox or QBE for example, your buyer will likely recognise them and it will build confidence and peace of mind because:
a) They know that should anything go wrong they are protected
b) Association with strong brands will increase credibility and trust in your business in the eyes of your client
But surely all companies will have PI Cover?
Correct, your competition will almost certainly have some form of Professional Negligence cover.
Still, in most cases, it’s not promoted and sits in the drawer until the worst happens, and they need to claim.
By providing it upfront as part of your tender or sales pitch, you underline the professionalism of your business and gain a perceived advantage.
Not only that, if your competition is insured with a lesser-known brand, you can leverage additional confidence.
Also, don’t forget if you’re pitching to a larger corporate company, tenders are often scored, and just by ticking the “insurance” box you may gain additional points in the eyes of your clients.
How should I promote it?
Your Business Insurance broker should be able to assist you.
At Insync Insurance we provide confirmation of cover certificates free of charge, and you can also download JPEG images for use in tender documents, letterheads, websites or brochures.
- Review your current PI Cover and make sure it fully reflects your business and protects your customer
- Think – Do you have 100% confidence in your current insurer and their brand? If not, how will your customer feel?
- Engage with your insurance advisor and make sure you have proof of cover documents for all tenders and it forms part of the sales process
- Update website and offline documentation
Yes, Insurance is an additional cost to your business.
Still, by making it a crucial part of your new business and customer retention programmes, it can pay for itself many times over!
FREE Business Insurance Review
Insync is a digital broker specialising in professionals, you can compare professional indemnity quotes online.
Alternatively, you can arrange a FREE review of all your current professional insurance requirements. You can book a slot via our website or alternatively call one of our team on 0330 124 0730.