Brokers professional indemnity: Covering your back
There is growing evidence that clients left unsatisfied by their insurance payouts are blaming brokers. Liz McMahon explores likely sources of litigation and how brokers can protect themselves
As the middle man, the broker has always been near the firing line when a client takes umbrage with their insurer's response to a claim and this proximity to danger has only increased during the economic downturn. For example, in the first three quarters in 2009, Howden Insurance Brokers saw a rise of 12.5% in professional indemnity (PI) claims in comparison with the same period in 2008.
We need to understand the drivers behind this worrying increase and an uncomfortable question must be asked
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