top of page
Image by Scott Graham

Zero Percent Finance

In some professions, PI cover will be a requirement of the industry’s regulatory body. But even if this isn’t the case, many businesses have a policy to guard against the potentially high cost of legal fees or compensation, as well as lost income from time spent in court, if they face an allegation from a client.

Generally, PI cover is required for businesses such as advice or professional services firms, such as consultancies, and businesses that provide designs to clients, for example architects. It is also common for contractors or freelancers to arrange PI cover if requested by a client.

For example; the Solicitors Regulation Authority requires its members to take out and maintain PI “that provides adequate and appropriate cover” according to its minimum terms and conditions. On top of this basic cover, however, firms generally take out top-up cover depending upon their likely risk exposure.

Why is it causing so many problems?

Many firms will have experienced a significant increase in their professional indemnity (PI) insurance premiums in recent years.

PI insurance (“PI”) is used to cover legal costs and expenses incurred or damages and costs won by a company if a client or customer accuses them of providing inadequate services, advice or designs that have caused them to lose money.

In some cases, for example professional services firms (solicitors, surveyors, accountants, etc) firms are required by law to maintain adequate levels of PI cover. 

Annual increases of up to 20% remain common, with top-up cover perhaps going up by 100%. 

What’s to blame?

The factors forcing up PI prices began before the COVID-19 pandemic, which has only exacerbated an existing trend. 

Increasing regulation and tighter underwriting rules within Lloyd’s, for example, has meant a number of insurers have either restricted their PI offerings or exited the market altogether, thereby reducing the supply of insurance capacity.

The Grenfell tragedy severely affected cover for surveyors, architects and everyone involved in property development and construction particularly those firms involved with any form of Cladding.

Combined with rising claim volumes, increasingly complex legal cases, stricter PI cover terms and an increase in the severity of claims have all compounded the rising price issue.  

Zero Percent Finance

Please note all applications for finance are subject to terms and conditions and our acceptance criteria. 

If you would like to know more, please contact Steve Marshall who will be more than happy to assist you.

07811 441683

However help is at hand. If you would like to spread the cost of your PI renewal over the year, we have arranged for you to do so at zero percent.

We have partnered with leading premium finance provider, Bexhill Finance, to offer all our client this exciting new facility. 

Not just PI insurance, we also provide zero percent finance for other products…

bottom of page