Ed Partridge
Head of UK Affinity, Marsh
PI renewal shouldn’t be a last-minute paperwork exercise. For ICAEW firms, it’s your opportunity to protect reputation and cashflow, avoid cover gaps, and reduce the chance of delays or surprise costs if a claim arises. This guide sets out practical, insurer-focused steps to help you prepare early and present your risk clearly.
1) Start early and set a clear renewal timetable
A strong renewal needs time. Aim to start 6–8 weeks before renewal (earlier if you’ve had claims, changed services, merged, opened a new office, or grown quickly).
A simple timetable helps you avoid last‑minute pressure and gives insurers time to engage. Build in time to:
- Reconcile financials and fee income splits
- Confirm what has changed in your services, clients and contracts
- Update claims and circumstances information
- Review limit, excess and key wording points
- Allow time for insurer questions and negotiation
Late submissions can mean fewer insurers are willing to quote and less scope to negotiate.
2) Treat the proposal form as underwriting evidence (because it is)
The proposal form is not just administration. It’s the evidence insurers use to price your risk and decide terms. Small inconsistencies can cause delays or trigger extra questions.
Focus on clarity and consistency:
- Reconcile fee income to management accounts and show a clear service split (for example: audit, accounts, tax, advisory).
- Describe higher-risk work accurately (for example, complex tax work, corporate finance, M&A support) and explain the controls you use.
- Keep answers consistent across the proposal form, renewal summary and any follow‑up questionnaires.
If something is uncertain, say so and explain the steps you take to manage it. Insurers prefer transparent submissions over vague ones.
3) Present claims history and “near misses” clearly — and show what you learned
Insurers look for trends and improvement. A well-structured claims and “near misses” summary can reduce friction and support better terms.
Use this checklist for each claim/notification/circumstance:
- Date (when it happened and when it was notified)
- Allegation summary (what is being alleged, in plain English)
- Status (open/closed, and key next steps)
- Costs paid / reserved (defence costs and any indemnity amounts, if known)
- Root cause (for example, scope creep, missed deadline, supervision gap, engagement letter weakness)
- Control improvements (what you changed: second‑partner review, revised engagement letters, stronger file checks, diary controls, training, onboarding changes)
Short, factual detail is best. Avoid long narratives, but do include what has changed since the event.
4) Re-check your limit of indemnity and excess - don’t renew on autopilot
Last year’s limit and excess might not fit this year’s risks. Review both with your current work profile in mind.
Limit of indemnity: what to test
Consider:
- Your largest client exposures and reliance on your advice
- Any move into higher-value advisory work
- Whether any client contracts specify minimum PI limits
- Whether one issue could trigger multiple related allegations
Excess: keep it affordable
A higher excess can reduce premium, but only if your firm could comfortably fund it without disrupting cashflow during a difficult period.
5) Compare wording and endorsements - small changes can have big consequences
Premium is only one part of value. Wording determines how cover responds when you need it.
At renewal, ask what has changed and check for:
- New exclusions or tighter definitions
- Changes to the retroactive date, run‑off provisions, or how related matters are grouped
- Notification conditions (what must be reported, and when)
- Endorsements that restrict what work you can do
Query changes early. It’s much easier to negotiate wording before renewal than to discover a restriction later.
6) Make it easy for insurers to understand how you control risk
Underwriters respond well to firms that can show consistent, practical controls. Keep it simple and specific.
Examples that tend to help:
- Supervision and file review processes (including who signs off higher-risk work)
- Engagement letter discipline, scope management and change control
- Client onboarding and conflict checks
- Complaints handling and escalation procedures
- Cyber and data protections relevant to the practice (for example, MFA, backups, incident response)
If your firm has changed (new partners, new office, new systems), explain how you maintained quality and oversight through the change.
7) Use your broker as a renewal project manager, not just a go-between
Good outcomes depend on how your submission is positioned and how options are compared. Use your broker to do the heavy lifting.
Ask for:
- An insurer-facing renewal summary that explains what you do, what has changed, and why you’re a good risk
- A clear comparison of options: premium vs excess vs cover differences (not premium alone)
- Early warnings about market pinch points for your service lines, so you can prepare the right detail
Share key changes early (new services, high-profile clients, overseas exposures, mergers/acquisitions). The earlier your broker knows, the more time they have to negotiate.
8) Get more value through the ICAEW members’ scheme
Marsh Commercial is the exclusive, appointed insurance broker for ICAEW members’ PI. ICAEW members can access an exclusive PI scheme designed for chartered accountancy practices, meeting ICAEW requirements with enhanced wording and practical benefits.
Scheme enhancements include:
- Free tax, legal and medical helplines
- Court attendance costs
- Public relations and crisis management
- Irrecoverable fees and disputed fee cover
- Six-year run‑off facility
- First‑party fidelity loss cover
- Joint ventures cover
The scheme also operates within a separate risk pool. This “strength in numbers” approach can support premium stability, and Marsh Commercial will negotiate rate changes with insurers on behalf of ICAEW to help lessen the impact of market fluctuations.
Quick renewal checklist (copy/paste-ready)
Use this as your internal checklist to keep renewal on track:
- Start preparations 6–8 weeks before renewal (earlier for claims/mergers/growth).
- Reconcile fee income and split it by service line.
- Document all claims, notifications and circumstances using the checklist in Step 3.
- Summarise what has changed in services, clients, locations, and controls.
- Review client contracts for PI limit requirements and scope expectations.
- Decide your target limit and an excess your firm can afford.
- Compare policy wording and endorsements against last year (ask what changed).
- Request an options grid: premium vs excess vs cover differences.
- Submit a complete, consistent pack and respond promptly to insurer questions.
Ready to make your PI renewal work harder?
Need help running a smoother PI renewal? Speak to Marsh Commercial - the exclusive, appointed insurance broker for ICAEW members’ PI - to structure your submission, answer insurer questions, and negotiate the best available terms.
