Excess Layer Professional Indemnity Insurance
Many Professional Indemnity Insurers are limiting their exposure for this class of cover, either by offering limits of cover “aggregated” in any one year or limiting the overall limits available to £1m or £2m per claim.
Previously higher limits were freely available up to £5m per Insurer, and with layering limits could easily be achieved for much higher levels.
All Insurance Companies and/or Lloyd’s of London Syndicates have maximum limits up to which they can offer insurance cover. This amount varies but lately has been reduced substantially, necessitating excess layers needing to be purchased.
This means that Professional Indemnity programs previously Insured by one Insurer now need structuring over several layers, with additional Insurers being involved.
We can provide this cover under various facilities we carry – feel free to contact us for assistance via the button above.
Prior to the pandemic, much of the business underwritten at Lloyd’s of London and the London Insurance market in general was still conducted on a face-to-face basis.
As an example, to the right is the “slip” page detailing the various amounts accepted by individual Lloyd’s Syndicates to confirm amounts covered and premiums pertaining to the arrangement of The Titanic and her sister ship The Olympic. As is now, significant insurance covers are arranged with various Syndicates or Insurers participating and accepting a percentage of premium commensurate to their retained risk element.
As a side note – incredibly Lloyd’s paid out in full the Titanic claim within 30 days of its loss, then totaling £1m (the equivalent of £95m now-days) and representing 1/6th of the total marine covers Insured worldwide then.
For Liability covers such as Professional Indemnity Insurance, limits are also often split with Insurers but also underwriting “layers” – often the first £1m, then £4m and then various proportions thereafter – with larger practices such as Solicitors buying up to £100m Professional indemnity cover or more if available.