If your firm is complex, operates across multiple jurisdictions or offers diversified services, you may face higher frequency and higher severity professional indemnity (PI) claims than other firms your size in other sectors. This might be particularly true where work you do is complex, bespoke or high-value. Coupled with cyber vulnerabilities and data exposure to liabilities arising from services influenced by AI or intellectual property and traditional, one-size-fits-all approach to PI insurance may not fit your business.
In this article, the last in our series aimed at multi-service professional firms, we look at three real business scenarios that show both how complexity manifests and how tailored PI cover responds.
Specialist firm managed post-acquisition coverage gaps
Following its acquisition by a substantially larger organisation, a specialist professional services firm needed to integrate into the buyer’s global insurance programme.
However, due to its bespoke activities and the highly tailored PI policy it had in place, the acquiring entity’s standardised programme was unable to accommodate several fundamental elements of the firm’s existing cover. This created a significant risk of material coverage gaps, particularly in relation to legacy liabilities and niche service exposures that fell outside the scope of the buyer’s policy.
To address this, we conducted a detailed comparative review of both insurance programmes, identifying critical incompatibilities and areas of potential uninsured exposure. By engaging directly with insurers and clearly articulating the specialist nature of the firm’s risk profile, we negotiated a stand‑alone PI solution designed to operate alongside the buyer’s broader programme. This approach ensured continuity of cover, maintained protection for high-risk and specialist activities and safeguarded the firm’s risk position during a critical period of corporate transition.
Complex professional services firm secured better renewal
A highly complex global insurance programme included 25 local policies that required careful coordination to ensure consistent coverage across jurisdictions. This was compounded by significant exposures linked to cosmetic testing activities, bringing heightened regulatory scrutiny and professional liability risks, as well as emerging AI-related liabilities associated with advanced technologies used in its services.
The business had also experienced major prior loss, creating pressure on both premiums and insurer capacity.
We addressed these challenges by providing strategic oversight of the multinational programme, aligning local and global coverage while delivering specialist advisory support on the cosmetic testing and AI-related risks.
Through proactive engagement with insurers and clear articulation of the client’s risk controls and governance, we successfully positioned the risk ahead of renewal. As a result, the firm secured a favourable renewal outcome with premiums below market expectations, retaining strong insurer support and capacity and strengthening confidence in its overall risk management approach.
Tech advisory firm addressed inconsistencies post-acquisition
The business faced challenges following a series of acquisitions within the digital and technology advisory sector, where the acquired businesses operated under standalone technology PI policies not aligned with the group’s existing programme. This created inconsistencies in coverage and a material risk that technology products and digitally enabled services weren’t adequately captured under the group’s broader PI wording. The organisation faced potential coverage gaps and aggregation risk across its PI placement.
We addressed these issues by conducting a detailed gap analysis to identify issues in the existing policy framework, focusing specifically on technology exposures and service delivery models.
We then developed bespoke policy wording enhancements and successfully negotiated with insurers, so the same wording applied across the whole insurance programme. This resulted in enhanced and fully aligned PI coverage across the group, incorporating both legacy and newly acquired operations. The business secured comprehensive protection through the programme limit while eliminating its residual acquisition-related exposures.
Is your PI insurance fit-for-purpose? Get in touch with our professional services specialists to find out.
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