The Benefits of a Professional Indemnity Insurance Loan
Phil Simmons, Senior Business Development Manager for Professions Finance at Shawbrook, explains how a Professional Indemnity Insurance Loan can provide financial flexibility and preserve vital working capital.
At a glance
In the dynamic landscape of business operations, professional indemnity insurance (PII) is a critical safeguard, providing protection from the financial repercussions of legal claims made due to professional negligence or errors. However, the annual renewal of PII can pose a significant financial burden and disruption to cash flow.
Phil Simmons, Senior Business Development Manager for Professions Finance at Shawbrook, explains how a Professional Indemnity Insurance Loan can provide financial flexibility and preserve vital working capital.
The financial challenge of PII renewals
PII is not just a prudent choice, but a regulatory necessity for many businesses, particularly those in the legal, accounting, and medical professions sectors. The annual cost of PII can be substantial, reflecting the level of risk and the potential for high-value claims. For SMEs, these costs can represent a significant outlay of funds that might otherwise be allocated to operational expenses or growth initiatives.
PII Loans: The benefits
A PII Loan can allow businesses to spread insurance costs over several months, avoiding a large one-time expenditure. This approach has several advantages:
- Cash flow preservation: By financing PII premiums through an unsecured loan, businesses can maintain working capital, ensuring they have funds available for operational costs and expenses
- Budget predictability: Fixed loan repayments provide a clear and predictable expense schedule, aiding accurate budget planning
- Opportunity for growth: With cash flow preserved, businesses can seize growth opportunities such as expanding services or investing in technology
- Business protection: With the right financial support, businesses can comfortably renew their insurance on time, protecting themselves from professional risks. PII Loans can be renewed annually, providing continuous protection and peace of mind.
Spotlight
A legal firm was looking to spread the cost of its PII liability into fixed monthly repayments. To ensure unbroken cover, speed was essential.
Shawbrook provided a £350k PII Loan, making payment directly to the insurance broker within 48 hours of acceptance.
Why work with Shawbrook?
If your legal, medical or accountancy clients are looking to fund their PII renewal, Shawbrook can provide flexible funding solutions, with:
- Loans between £25,000 - £2,000,000
- 3 – 18 month terms
- Payment directly to customer or insurance provider/broker on a date of choice
- Speedy decisions and turnaround
- Simple, electronic documentation
- Access to a dedicated finance expert
If you are a broker and are interested in working with us to support your medical, legal and accountancy clients, get in touch today.
How can we help you build your business?
Our team of experts across the UK are ready and waiting to speak to you about how we can help you realise your business aspirations. Use our enquiry form to get in touch, or contact the team directly through our contact page.