We have received Member feedback as well as feedback from the professional indemnity insurance (PII) industry, that the PII market is still challenging for certain valuation types, in particular, if valuers are considering starting up a new company during a pandemic.
Marsh (ValCover) wishes to remind Members of the fundamental factors that PI insurers look at when assessing individual risk:
- The valuer’s individual circumstances and personal/business history including but not limited to
- years the business has been established
- qualification of principals of the business
- business model – what areas of valuations you work in
- have you had any past claims
- whether the valuer contracts to an established business or they are a sole practitioner starting out, different underwriting criteria would apply for each of these;
- any additional policies, processes or procedures you have in place to assist the business with risk management and quality control throughout the valuation process
- insurers assess each individual risk each year and provide terms for that individual risk.
Following good business risk management practices, if you are considering setting up on your own, please consult your broker to assess your individual risk and provide your insurance broker with any other items that would be useful for the insurer when considering your risk.
Posted on September 13, 2021