Professional Indemnity Insurance Funding
If you provide professional advice that could lead to disputes or negligence, the cost of professional indemnity insurance can be significant. But PII finance is there to help you spread the cost over months instead of paying it out in one go. Learn more and apply below.
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What is professional indemnity insurance finance?
Professional indemnity insurance finance, also known as a PII loan, is a form of funding that covers the costs of your professional indemnity insurance. Instead of paying your insurance in one lump sum, you can spread the cost into manageable monthly repayments.
Who would need PII finance?
Professional indemnity insurance can be costly, particularly if you’re in an industry where there’s a high risk of legal action due to errors, bad advice, or negligence, i.e. law firms or medical practices. And unlike other business expenses, i.e. salaries, you must pay for your insurance annually, but securing funding can help you lessen this financial burden.
On average, PI insurance policies cost law firms 5% of their annual revenue. So if your annual revenue is 1.5 million, your insurance will cost around £75,000 each year. That’s a sizable chunk of your working capital gone instantly. But by applying for corporate finance for professional indemnity insurance, you can make predictable monthly loan repayments and keep cash in the business for longer.
How does professional indemnity insurance funding work?
PII funding is a short-term business loan that usually lasts the length of the insurance policy — 12 months (but some lenders might extend up to 24 months). The borrower typically repays the loan in fixed monthly repayments, and in some cases, the lender can pay the insurer directly to facilitate an even easier process.
Lenders can be cautious when assessing PII loan applications, which can delay the process, so it’s a good idea to get your professional indemnity insurance finance set up early based on assumed premiums. Be prepared for all law firm partners or directors to sign personal guarantees, particularly if you’re working with a new lender.
How to apply for professional indemnity insurance finance
To get the most competitive rates, it’s a good idea to compare the rates available in the marketplace. Our free loan comparison tool helps you find and compare lender options in mere minutes. The self-serve platform lets you search and adjust results based on your loan requirements.
Weigh your financial options carefully before rushing into a loan application. There are plenty of loan options available to help you better manage your cash flow. Explore all business finance products.
Or compare PII finance and get a free quote today.
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Adrian T
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Amazingly fast, efficient service, minimal paperwork. So much faster than my business bank of twelve years.
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