Case Study: Servca successfully places multi-faceted Professional Indemnity (PI) policy initially rejected by the market

Case Study: Servca successfully places multi-faceted Professional Indemnity (PI) policy initially rejected by the market

Case Study: Servca successfully places multi-faceted Professional Indemnity (PI) policy initially rejected by the market

5 Feb 2024

Servca was approached by a broker-client seeking assistance in securing terms for an energy broker. The insured faced difficulty in obtaining terms from their holding insurer due to changes in the insurer’s appetite, and the diverse range of services the insured provided.

Overcoming complexity

The insured provides services to a wide range of customers including, individual homeowners, SME businesses, and third-party energy providers, who are financially supported by local government funding. Additionally, the insured also offers services through designated third-party providers. This covers various types of installation, such as new windows, doors, and energy meters, as specified by the appropriate energy saving scheme. However, complexity was further multiplied by the use of other third-party construction firms, determined not only by location but also by the specialised service requirements.

Given this unique blend of services, the holding insurer were not able to accommodate the insureds contractual requirements.

Our Solution

We conducted a thorough review of the insured's terms and conditions for both B2B and B2C services, eliminating potential issues within their contracts. This enabled us to determine the extent of the insured's services, their exposure and consequently limit their liability.

Upon a comprehensive review, we collaborated with insurers to identify the necessary coverage. While there could be contingent exposure for faulty workmanship by third-party contractors, limited liability was ultimately mitigated, which is important considering that government schemes also engaged in dialogue with these contractors. Furthermore, there was limited exposure for the insured to make a viable claim for ‘energy costs savings’ as the insured was not providing advice, merely connecting two parties for mutual incentives.

By applying bespoke endorsements, which relate specifically to limiting the liability to contingent cover & reputing financial losses, the insured could accept this under their insured’s terms and conditions, from a B2B & B2C stance.

The Result

Our negotiation with insurers and the application of bespoke endorsements, led to agreed terms within only a few days. The broker-client and insured expressed confidence in the coverage provided, allowing them to continue trading and serving clients. Notably, the coverage offered was significantly wider compared to their previous policy, was backed by a Lloyds Syndicate and gained a dedicated claims handling facility – a great result.

Overcoming complexity

The insured provides services to a wide range of customers including, individual homeowners, SME businesses, and third-party energy providers, who are financially supported by local government funding. Additionally, the insured also offers services through designated third-party providers. This covers various types of installation, such as new windows, doors, and energy meters, as specified by the appropriate energy saving scheme. However, complexity was further multiplied by the use of other third-party construction firms, determined not only by location but also by the specialised service requirements.

Given this unique blend of services, the holding insurer were not able to accommodate the insureds contractual requirements.

Our Solution

We conducted a thorough review of the insured's terms and conditions for both B2B and B2C services, eliminating potential issues within their contracts. This enabled us to determine the extent of the insured's services, their exposure and consequently limit their liability.

Upon a comprehensive review, we collaborated with insurers to identify the necessary coverage. While there could be contingent exposure for faulty workmanship by third-party contractors, limited liability was ultimately mitigated, which is important considering that government schemes also engaged in dialogue with these contractors. Furthermore, there was limited exposure for the insured to make a viable claim for ‘energy costs savings’ as the insured was not providing advice, merely connecting two parties for mutual incentives.

By applying bespoke endorsements, which relate specifically to limiting the liability to contingent cover & reputing financial losses, the insured could accept this under their insured’s terms and conditions, from a B2B & B2C stance.

The Result

Our negotiation with insurers and the application of bespoke endorsements, led to agreed terms within only a few days. The broker-client and insured expressed confidence in the coverage provided, allowing them to continue trading and serving clients. Notably, the coverage offered was significantly wider compared to their previous policy, was backed by a Lloyds Syndicate and gained a dedicated claims handling facility – a great result.

Global Headquarters

Servca Group

Dukes House

32-38 Dukes Place

5th Floor

London, EC3A 7LP

United Kingdom


+44 (0) 207 2250000

info@servca.com


Broker at Lloyd’s SLM1389

European Office

Servca Europe

Dragonara Business Centre

Dragonara Road

5th Floor

St Julian’s, STJ 3141

Republic of Malta


+356 (20) 341690

eu@servca.com


Broker at Lloyd’s (Brussels) SLM1883

Canadian Office

Servca Canada Insurance Group Inc
40 King Street West
Suite 2100
Toronto
M5H 3C2
Canada


+1 (647) 846 5555

canada@servca.com


Non-regulated servicing company

Northern Ireland

Servca Northern Ireland
River House Belfast

48-60 High Street

Belfast

BT1 2BE



+44 (0) 2895582000

ni@servca.com


Broker at Lloyd’s SLM1389

© 2024 Servca


Servca Group Ltd is a private limited company registered in England and Wales; Registered Number: 7727494; Registered Office: Dukes House, 32-38 Dukes Place, 5th Floor, London, EC3A 7LP, United Kingdom. Authorised and regulated by the Financial Conduct Authority. Servca European Insurance Brokers Ltd (a private limited company incorporated in Malta and enrolled to act as an insurance broker); Tower Business Centre, Level 3, Tower Street, Swatar, BKR, 4013, Republic of Malta. UK branch office is registered in England and Wales, authorised and regulated by the Financial Conduct Authority. Servca Canada Insurance Group Inc, a private limited company incorporated at 40 King Street West, Suite 2100, Toronto, M5H 3C2, Canada. Servca group of companies are owned and operated by Servca Group Holdings Ltd, a private limited company registered in England & Wales.

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Cookies

Global Headquarters

Servca Group

Dukes House

32-38 Dukes Place

5th Floor

London, EC3A 7LP

United Kingdom


+44 (0) 207 2250000

info@servca.com


Broker at Lloyd’s SLM1389

European Office

Servca Europe

Dragonara Business Centre

Dragonara Road

5th Floor

St Julian’s, STJ 3141

Republic of Malta


+356 (20) 341690

eu@servca.com


Broker at Lloyd’s (Brussels) SLM1883

Canadian Office

Servca Canada Insurance Group Inc
40 King Street West
Suite 2100
Toronto
M5H 3C2
Canada


+1 (647) 846 5555

canada@servca.com


Non-regulated servicing company

Northern Ireland

Servca Northern Ireland
River House Belfast

48-60 High Street

Belfast

BT1 2BE



+44 (0) 2895582000

ni@servca.com


Broker at Lloyd’s SLM1389

© 2024 Servca


Servca Group Ltd is a private limited company registered in England and Wales; Registered Number: 7727494; Registered Office: Dukes House, 32-38 Dukes Place, 5th Floor, London, EC3A 7LP, United Kingdom. Authorised and regulated by the Financial Conduct Authority. Servca European Insurance Brokers Ltd (a private limited company incorporated in Malta and enrolled to act as an insurance broker); Tower Business Centre, Level 3, Tower Street, Swatar, BKR, 4013, Republic of Malta. UK branch office is registered in England and Wales, authorised and regulated by the Financial Conduct Authority. Servca Canada Insurance Group Inc, a private limited company incorporated at 40 King Street West, Suite 2100, Toronto, M5H 3C2, Canada. Servca group of companies are owned and operated by Servca Group Holdings Ltd, a private limited company registered in England & Wales.

Privacy Policy

Cookies

Global Headquarters

Servca Group

Dukes House

32-38 Dukes Place

5th Floor

London, EC3A 7LP

United Kingdom


+44 (0) 207 2250000

info@servca.com


Broker at Lloyd’s SLM1389

European Office

Servca Europe

Dragonara Business Centre

Dragonara Road

5th Floor

St Julian’s, STJ 3141

Republic of Malta


+356 (20) 341690

eu@servca.com


Broker at Lloyd’s (Brussels) SLM1883

Canadian Office

Servca Canada Insurance Group Inc
40 King Street West
Suite 2100
Toronto
M5H 3C2
Canada


+1 (647) 846 5555

canada@servca.com


Non-regulated servicing company

Northern Ireland

Servca Northern Ireland
River House Belfast

48-60 High Street

Belfast

BT1 2BE


+44 (0) 2895582000

ni@servca.com


Broker at Lloyd’s SLM1389

© 2024 Servca


Servca Group Ltd is a private limited company registered in England and Wales; Registered Number: 7727494; Registered Office: Dukes House, 32-38 Dukes Place, 5th Floor, London, EC3A 7LP, United Kingdom. Authorised and regulated by the Financial Conduct Authority. Servca European Insurance Brokers Ltd (a private limited company incorporated in Malta and enrolled to act as an insurance broker); Tower Business Centre, Level 3, Tower Street, Swatar, BKR, 4013, Republic of Malta. UK branch office is registered in England and Wales, authorised and regulated by the Financial Conduct Authority. Servca Canada Insurance Group Inc, a private limited company incorporated at 40 King Street West, Suite 2100, Toronto, M5H 3C2, Canada. Servca group of companies are owned and operated by Servca Group Holdings Ltd, a private limited company registered in England & Wales.

Privacy Policy

Cookies