PI insurance cost responds strongly to some things and barely at all to others, and buyers routinely spend their effort on the second group. Knowing which is which turns a frustrating renewal into a short one.
What moves it a lot
The declared activity, which sets the band. Fee income. Claims history, including claims that settled for nothing. And the market cycle, which can move a whole profession without anything changing at the firm.
What moves it a little
The limit, which costs less than proportionally to raise, so buying a higher one is rarely the reason a quote is expensive. The excess, which is a real but modest lever and worth taking where you would never claim for a small amount. And contract terms, which help and are a secondary factor for smaller firms whose clients set the terms anyway.
What barely moves it
Shopping the same badly described risk to more brokers. Most of the dispersion buyers see between quotes comes from different assumptions about the activity rather than from different appetites, which is why describing the work properly beats collecting quotes.
Where a broker earns their fee
On a straightforward risk in a soft market, very little. On a profession insurers are cautious about, on a firm with a claim in its history, or in a hard market where capacity is leaving, a broker who places your profession regularly reaches insurers a form cannot and presents the risk in the language an underwriter reads. That is worth more than any negotiation on price.
Questions people ask about pi insurance cost
Why do quotes vary so much?
Usually because insurers are assuming different things about your activity, not because their appetites differ that much.
Is raising the limit expensive?
Less than proportionally, because the insurer's expected loss sits in the smaller claims.
Does a claim that settled for nothing count?
It is still underwritten. What insurers want to know is what changed afterwards.