Can my architecture/engineering firm switch Professional Liability insurance companies?
There are several answers to this question when it comes to switching insurance companies.
Yes your firm can switch at renewal time. There are a few items to be aware of if your firm does decide to change insurance companies. The most important piece of this is your firm getting the same prior acts coverage with the new insurance company as you were with the old insurance company. This can fly under the radar sometimes but it is vitally important that your firm is getting the same prior acts coverage.
Another item to verify is that the coverages with the new insurance company are similar to the old insurance company. This involves checking the hammer clause, exclusions, extended reporting periods, etc. If the new insurance company’s coverage are not the similar or better it is not advised to change insurance companies.
Premium is not always a driving factor to switch insurance companies. Many insurance companies offer multi line discounts, longevity credits and claims free credits. If your firm switches insurance companies you will lose these credits with the current insurance company. The new premium may seem enticing but be sure to consider all of the factors involved.
On another note your firm may not change insurance company’s mid-term. The insurance companies try to make as many accommodations to insureds as much as possible but unfortunately changing insurance companies in the middle of a policy year is not possible. If you have a multi-year policy, it may be possible to switch insurance companies on the anniversary date of the policy.
Switching insurance companies is a difficult decision. Be sure to review all of the possibilities with your agent if you choose to change. If you have any questions with regards to Professional Liability policy insurance company changes please call or email your Professional Underwriters agent for assistance.