Situation:

We were contacted by a retail broker who had previously placed cover for a large commercial property. Following a recent rebuilding survey, the Sum Insured increased significantly from £33M to £166M. This substantial rise caused the previous composite insurer to reduce its capacity from 100% of the risk to just 35%. As a result, we were tasked with sourcing additional insurers to step in on a follow-line basis, supporting the primary insurer.

Task:

The property was a multi-tenure site, featuring leisure risks such as a bowling alley, bar, cinema, gym, and several unoccupied units. This variety of uses posed additional challenges, as leisure and unoccupied risks are often outside the underwriting appetite of many insurers. Our objective was to ensure full cover for the revised Sum Insured while navigating these complexities.

Action:

We conducted a thorough market exercise, approaching composite insurers, syndicates, and bespoke schemes. Due to the size of the risk, several binders’ capacity limits were exceeded, and the multi-tenure use, especially involving leisure and unoccupied units, led to declines from a significant portion of the market. Nonetheless, we worked diligently to engage with insurers willing to take on the risk, reviewing and negotiating terms to find appropriate solutions.

Result:

We successfully placed the cover using a split capacity arrangement between a composite insurer and two syndicates. Crucially, all insurers agreed to follow the primary policy wording, ensuring that the client was not disadvantaged by having multiple policies. This approach avoided the complexity of differing policy wordings, providing the client with seamless cover across all parties involved.

Our Commitment to Broker Clients

At Servca, as an independent specialist broker, we are dedicated to thoroughly understanding the unique coverage needs of our clients. By prioritising this from the outset, we ensure our risk assessments and in-depth reviews are tailored to each specific case, avoiding generic solutions. This approach allows us to identify critical gaps in cover and uncover opportunities to craft bespoke solutions that are better aligned with the insured’s needs, particularly where complex regulatory requirements must be met.

To learn more about how we can support you, please don’t hesitate to get in touch.

Disclaimer

This article is intended for educational purposes only and does not constitute legal advice. Healthcare providers are encouraged to consult with legal professionals to ensure compliance with applicable laws and regulations regarding professional boundaries and sexual misconduct. Servca disclaims any liability for actions taken based on the information provided in this article.