The NACFB is proud to announce that it has launched an insurance backed Mutual designed to address rising Professional Indemnity (PI) premiums and provide tailored cover for its Members.
Nearly 100 NACFB Members have already taken out a policy through the NACFB Mutual, delivering average savings of up to 30% when compared to previous PI premiums.
The NACFB Mutual, managed by specialist provider Tower Insurance, is available exclusively to NACFB Members. It seeks to provide more expansive PI cover tailored specifically to the needs of commercial finance brokers. The NACFB Mutual also delivers additional benefits such as competitive premiums based on each Member’s individual risk profile. The NACFB Mutual has been developed in direct response to a PI market plagued by increases in premiums and excesses, alongside continual reductions in policy coverage.
Owned by its policyholders, the NACFB Mutual is governed by an elected board of directors and will only cover the professional indemnity exposure of NACFB Members. Owing to the minimum standards reviews undertaken by the Association, NACFB Members carry a lower risk profile than many non-Members and the Mutual’s pricing will seek to reflect such benchmarks of professionalism.
NACFB chair, Paul Goodman commented: “Last year, 21% of NACFB Members said the biggest threat to their brokerage was the rising cost of PI. Rather than wait for premium prices to fall, we have taken matters into our own hands. For the last few months, the Association has been quietly rolling out a viable solution, one that not only provides Members with tailored cover at a lower premium but also provides tangible Mutual benefits to the policyholders.”
Paul added: “The NACFB Mutual seeks to put an end to market inequality whilst establishing greater stability and continuity for our Members. By removing a key concern for Members, they can focus on doing what they do best, helping to fund UK businesses.”
Phil Gray, managing director of Watts Commercial Finance shared: “We were among the very first to take out a policy through the NACFB Mutual and benefited from savings of 30% over our previous policy.
“The underwriting team for the NACFB Mutual understood the nature of our business and explained how the policy coverage was greater than we had had before,” Phil added.
NACFB managing director, Norman Chambers said: “The broader professional indemnity market has been a poorly performing sector for insurers, and it was evident to the NACFB Board that our Members were being unfairly categorised, when in reality, they carry a much lower PII risk. In addition, the ongoing delivery of data from our Members will enable us to maintain a fairer insurance cover.”
Members with renewals on the horizon can request a quote from the NACFB Mutual by visiting nacfb.org/mutual