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Procurement Market Intelligence Report

Professional Indemnity Insurance
Sourcing Guide & Market Trends

Comprehensive intelligence for making smart purchasing decisions

Learn about actual and potential costs

How much should I pay for Professional Indemnity Insurance?

What is the average price of Professional Indemnity Insurance?

This procurement report includes pricing information to help you purchase Professional Indemnity Insurance. Our analysts provide a benchmark price and a price range based on key pricing factors to help you understand what you should be paying for this specific product or service. To see the average price for this and hundreds of other products and services, subscribe to ProcurementIQ.

Has the price of Professional Indemnity Insurance been rising or falling?

Analysts look at market data from the previous three years to determine an overall price trend. You can use the recent price trends to help you understand price volatility and plan your budget.

I’m not ready to purchase Professional Indemnity Insurance yet. Will I pay more if I wait too long?

We forecast the next three years of price movements by looking at factors likely to affect the market's supply chain, such as inputs, demand and competition. You can then use the price forecast to figure out the best time to purchase.

What other costs are associated with purchasing Professional Indemnity Insurance?

Our analysts calculate the total cost of ownership and assign a level of low, moderate or high, depending on things like customization, integration and installation. Use this information to budget for Professional Indemnity Insurance with a reduced risk of unexpected costs.

See how we display average pricing information, trends and market data.

Find the vendor to meet your needs

Where can I purchase ?

Market share concentration for professional indemnity insurance is low, with the top four suppliers in the market accounting for less than 30.0% of total revenue. There are about 415,700 providers of professional indemnity insurance in the United States, including direct insurance carriers, agents and brokers. These firms range in size... Subscribe to learn more.

Questions to ask potential suppliers

How can I gain leverage during negotiations?

Experience and Expertise

How long have you provided these products to your longest-tenured client?

What qualifications does your staff have and what measures do you take to keep those qualifications up to date?

What industry do you most commonly supply this product for?

To what extent will ordering multiple products from your firm allow me to save on costs?

What is your repeat business rate for businesses in my industry and how does that compare to your overall rates?

Supply Chain Risk

Over the past three years, what percentage of your revenue has been dedicated to raw input materials? How has that changed?

Has the availability of raw materials tightened due to the coronavirus outbreak?

Over the past three years, what percentage of your revenue has been dedicated to labor?

How have fluctuations in input prices affected the prices of your products during the past three years?

How do you mitigate sudden price increases in raw materials?

When input prices rise, how much of the cost is absorbed by you and how much is passed onto buyers?

How, if at all, has your supply chain been affected by import tariffs levied in 2018?


How do you manage regulatory change? Do you have regulation advisers or methods to track regulation?

How have changing regulations influenced your pricing now and how will the changes affect prices over the life our proposed agreement?

What ongoing training procedures do you provide for your staff?

Have you ever been found to be noncompliant with regulatory frameworks?

Amid widespread health concerns during the COVID-19 pandemic, what contingency plans are in place to mitigate risk to your clients and employees? Do you offer clients any flexible exceptions, such as contract suspensions?

Experience & Financial Strength

What experience do your employees have selling insurance policies? How long have they been selling professional indemnity insurance?

What certifications and licenses do your employees hold?

How long have you been providing insurance in my region? Have you ever lost your license to sell insurance?

What experience do your employees have selling insurance to similar buyers in my market?

Has your financial health changed in the past three years? If so, how has your pricing changed?

Policy Processing

If I make an amendment to the policy, how long will it take for this to be processed and put into effect?

On average, how long does it take for you to process a claim and then pay it out?

To prevent a gap in insurance coverage, what are your renewal procedures? During the renewal period, how may my policy change?

What is the standard procedure for submitting a claim? What type of records do you keep of any claims made? Do I have access to these records?

Pricing Structure

If I pay the entire premium prior to the start of the policy, what discounts do I receive?

What is the interest rate for paying in monthly, quarterly or semi-annual installments?

What type of financial penalties will I face for ending my contract early?

How much have premiums fluctuated in the past three years? How much do you expect premiums to change in the next three years?

How do you determine my deductible? Is this subject to change at the end of each year?

If I have more employees who require insurance policies, how will the price of the premium change?

Customer Service

Do you offer the ability to report claims both online and over the telephone?

How quickly will a representative get back to me after I have filed a claim?

What type of online customer service do you offer? Can I pay my bill online or change my insurance coverage, limit and deductible online?

What type of buyer rewards do you offer?

Do you provide customer service after business hours?

Amid widespread health concerns, what contingency plans are in place to mitigate risk to your clients and employees? Do you offer clients any flexible exceptions, such as contract suspensions?

Types of Policies

Based on my business size, employees' positions, market and location, what is the average premium? Average limit? Average deductible?

What methodology do you use to determine the premium, limit and deductible for your clients?

Do your policies cover defense expenses or punitive damages?

Do you offer policies that cover retroactive dates?

Do your policies allow clients to make claims for events that occurred while the policy was in force but after the policy has expired?


How do you differentiate yourself from other providers that offer professional indemnity insurance?

What services do you provide that your competitors do not?

How has competition among insurance providers changed your insurance policies or your customer service?

How does your firm plan to respond to changes in market share concentration during the next three years?

Are you experiencing fluctuations in demand as a result of the coronavirus outbreak? What measures are you taking to handle increased/reduced demand?

Related Services

If I bundle several insurance policies together, what type of discounts may I be eligible for?

Do you recommend that I purchase an umbrella policy? If yes, how will such a policy benefit me in the long-term?

What other insurance policies do you recommend I purchase based on my business? Why?

Do you offer any risk control services that may allow me to reduce my premium?

Do you provide any non-insurance-related services that would be useful for my company? If so, what are they?

What new solutions have you introduced to address issues brought on by the coronavirus pandemic?

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Key elements for every RFP

What should my RFP include?

Project Budget

Buyers should indicate what their preferred premium is.

Buyers should include the deductible and limit amounts they prefer.

Buyers should disclose any expectations that have for payment, including schedule and method.

Buyers can reference the Benchmark Price section of this report to determine whether they are paying a competitive price for coverage.

Selection Criteria

Buyers should evaluate vendors based on their financial strength.

Buyers should consider the experience that providers have in the professional indemnity insurance market.

Buyers should evaluate vendors based on the level of service they provide.

Buyers should evaluate providers based on references from their previous or current clients.

For further discussion of the key selection criteria buyers should consider when evaluating potential providers, see the Buying-Decision Scorecard section of this report.

Project Schedule

Buyers should indicate when they expect coverage under the professional indemnity insurance policy to start.

Buyers should state any preferences they have regarding the schedule for renewing coverage.

Buyers should indicate their preferred contract length.

Buyers should provide a list of any other relevant dates for the RFP, such as submission deadlines and the date when contract awards will be announced.

Evaluate major factors to mitigate risk

How risky is the supply chain?

Supply chain risk for professional indemnity insurance has been moderate in the three years to 2020. When risk is moderate, providers are more likely to face uncertain expenses due to supply chain disruptions. If this occurs, providers will typically pass these costs on to buyers. Providers may also be less... Subscribe to learn more.