The attached article demonstrates how much insurers' thinking has changed with respect to risk when considering an LPL policy. An application form can only ever provide the very basics of what a Professional Service Firm does. For insurers to be able to differentiate a firm and understand what makes them tick they are looking at firms on a much more holistic basis with respect to how they handle modern societal and governance challenges such as Diversity and Inclusion, Substance Abuse and Mental Health problems.
Produced by HDI Global Specialty SE and supported by a number of key industry experts, this paper focuses on several areas of risk that if ‘glossed over’ can lead to serious repercussions, not just for individuals but also for the sustainability of the whole firm.
These issues explain the reasons why insurers are so interested in learning about the culture of a firm, especially if they are going to insure them. It is why Paragon are advocates of our clients building long-term relationships with their key insurers (whether in person or more recently virtually). A key role of the broker is to ensure that the firm is represented in its best light. Oftentimes it’s the culture that will shine through as a key differentiator – and strong, proactive policies on inclusion, mental health and well-being supported by the most senior management can only be viewed as a positive.
On the flip side, we know that our clients also want to work with insurers who can show a deep understanding of the issues they are facing and prepared to take a holistic view of their business, not just focusing on the bottom-line figures.
“A firm can have all the tick box policies and procedures, designated go-to people, but if a firm hasn’t developed a culture that actually embraces the underlying concepts, it doesn’t achieve the desired goals. That will manifest itself in risk which will probably manifest in claims.”