BIBA launches Professional Indemnity Volume 6: Managing under-insurance – A guide to prevention

5th May 2016

The British Insurance Brokers’ Association has launched the sixth guide in its informative Professional Indemnity (PI) Initiative and this time the subject is the highly topical issue of under-insurance.

An FCA thematic review of commercial claims revealed what they called “an alarming degree of under-insurance”, and the effects of this can have devastating consequences for both the insured and for the broker.  The review also revealed that in nearly a quarter of the Business Interruption claims that were examined the loss exceeded the indemnity period set at 12 months.

Steve White, BIBA Chief Executive said; “This latest publication in the PI series will be of enormous benefit to members, helping them to guide customers in selecting appropriate levels of cover; especially in connection with Business Interruption insurance.

“Many of our members and insurer partners have told me that the difficulty in obtaining planning consents and in some urban areas the scarcity of labour and materials is drawing out the time needed to reinstate property and get businesses back on their feet.  That is why at the BIBA Conference next week I will be calling on the industry to adopt a minimum of 24 months indemnity period for most business insurance policies.”

The BIBA Guide on preventing under-insurance, co-authored by Roger Flaxman of Flaxman Insurance Claims Advocates outlines the duties and obligations an insurance broker has and how these affect their Professional Indemnity risk. It goes on to detail the considerations needed to assess the necessary levels of cover for property, liability and importantly business interruption.

Steve concluded: “For us, under-insurance, alongside building a framework to operate under the Insurance Act 2015, is one of the major issues of the year and we will continue to do all that we can to help members and their clients manage it.”


  1. Guide for BIBA members available from


  1. BIBA press office:
    Pam Quinn, Communications Manager
    020 7397 0223
    [email protected]
  2. About the British Insurance Brokers’ Association

The British Insurance Brokers’ Association (BIBA) is the UK’s leading general insurance intermediary organisation representing the interests of insurance brokers, intermediaries and their customers.

BIBA membership includes just under 2,000 regulated firms having merged with the Institute of Insurance Brokers (IIB) in November 2011.

General insurance brokers contribute 1% of GDP to the UK economy and BIBA brokers employ more than 100,000 staff.

54% of all general insurance is sold by an insurance broker and they arrange 78% of all commercial insurance business.

Insurance brokers put the client’s interests first, providing advice, access to suitable insurance protection and risk management.

BIBA helps more than 250,000 people a year to access insurance protection through its Find a Broker service, both online and via the telephone.

BIBA is the voice of the sector advising members, the regulators, consumer bodies and other stakeholders on key insurance issues.