professional indemnity insurance
The growth of Professional Indemnity Insurance (PI) has increased significantly within
the last few years due to a number of factors and market forces. Key reasons include:
- Outsourcing : Major companies are increasingly outsourcing work
to third party suppliers in a drive to reduce costs. Companies rarely invite new
suppliers to quote for new business without the protection which professional indemnity
insurance (PI) brings. Suppliers
on the other hand look to indemnity insurance as a safeguard against
the unforseen circumstances created by a new and untried relationship.
- Compensation Culture : It has become a fact of everyday commercial
life, that companies are more likely to seek compensation than ever before. The
growth of “no success no fee” legal firms, is an additional factor.
- Costs : Costs associated with a legal dispute have increased dramatically
in recent years. Professional indemnity insurance is recognised as playing an important
part in minimising the risks of open-ended legal costs and lengthy disputes. Even
minor disputes can often lead to extraordinary legal bills.
- Minimising Business Disruption : Professional indemnity insurance
is often seen by companies as a means to safeguard against interuptions caused by
unforseen or unintentional negligence.
- Compulsory Cover : Professional indemnity insurance is compulsory
for most professional businesses from architects, to engineers and accountants.
As increasing numbers of businessess "go global" companies are seeking indemnity insurance in order to reduce their exposure.
the client
Founded in 1988, Integralis is Europe's Leading Security Systems Integrator and the
Trusted Security Partner for over 50% of the UK’s top 100 companies, employing many
of the leading technologists and most skilled engineers in the industry. As a specialist
in information security, the company’s expertise lies in identifying, analysing
and minimising network and system security risks and offering comprehensive solutions
that address the total IT requirements of its customers.
Integralis operates via 160 companies in 35 countries with 18 offices. It is represented
in all five continents.
the problem and its context
The success in winning over this global client has at its heart the close working
relationships between members, and in particular its International Desk Managers
across the world.
The German IBA member, Dr. Friedrich E. Hörtkorn
GmbH, contacted the English IBA member Sutton Winson
Hörtkorn was in the process of bidding for the new German business of Integralis
but there was a problem. The client (Integralis) was seeking a specialist Professional
Indemnity solution across both Germany and the UK, but the quote and cover had to
follow the "English Professional Indemnity" system.
Both Hörtkorn GmbH and Sutton Winson Ltd understood that the Professional Indemnity
market was not as developed or as sophisticated as it is in England, which gave
them a competitive advantage if they could work closely together to a common goal.
The Solution
Elaine Redington at
Sutton Winson and Sherrill Lindemann at Hörtkorn
GmbH worked on the final proposal, which was put together and presented
to the German-based client in Munich within five working days.
The business was won against a number of incumbent and competing companies in both
the UK and Germany., and a key component of the final proposal and its success,
lay in the business benefit of the IBA network model, and its ability to access
specialist knowledge at a fast speed.
Subsequent Developments
Sutton Winson has subsequently worked closely
with the client company to provide assistance and cover for its USA partner, and
has since won additional business across Europe and the Middle East, including the
markets of France, Sweden, Switzerland and Dubai.
In addition to this business, Sutton Winson
has received two additional "referrals" from within the IT world, on which it is
currently working.
"We knew that we were almost asking for the impossible in demanding a full proposal
from our German insurance broker, to bridge Professional Indemniity across two key
markets for us. And in a very short period of time.
We knew the Professional Indemnity Insurance market was better developed in the
UK but did not know how to access it.
Dr. Friedrich E. Hörtkorn GmbH introduced us to their IBA partners Sutton Winson,
and together they produced a proposal that was bang on target.From my first experience
with both companies, we have gone forward to broadening our coverage internationally
with Sutton Winson.
I would have no reservations in recommending them to anyone in our Industry.”
John Wright of Integralis
Executive Summary
This case study highlights some key IBA principles
- A specialist knowledge in one country assisting an IBA member to gain business in
its home market
- The close relationships which the IBA International Desk Managers foster
- The speed by which business can be conducted and detailed proposals prepared