The Start of Something Big
Tue Sep 21 2021
As Start-up Companies Seize New Opportunities – Prospects for Brokers grow
While the pandemic has upended so many aspects of our lives in the past year, it has also revealed rapidly changing needs – and start-up companies are stepping up to address them. In the first four months of this year, there were 9,000 new companies registered in Ireland. That’s a 24 per cent increase over the same period last year, according to Company Bureau Formations Limited. At this rate, Ireland could see as many as 27,000 new companies registered by the end of the year, well above the 22,723 company formations in 2019, which holds the record for the highest number of new formations to date.
As these companies launch and expand, however, a large percentage of them are leaving themselves vulnerable to risk. According to GlobalData research, nearly 39 percent of small and medium-size enterprises (SMEs) lack professional indemnity insurance – critical cover for businesses providing advice or professional services to clients – because they believe they don’t need it, feel it’s too expensive, or simply don’t know why it’s important.
This could leave businesses on the back foot when operating in an environment of ever-evolving risk.
“New businesses need the flexibility to take considered risks and accept the challenges that will enable them to grow,” said Jonathan Forster, SME Distribution Director. “PI cover plays an important role in protecting businesses so they can serve clients with confidence and be in a position to thrive.”
Travelers launched Professional Indemnity Combined to provide these companies with the comprehensive cover they need in a single package. The product was designed specifically for small companies in the technology and emerging professions sectors. It combines Professional Indemnity, Liability, Property and Cyber Fundamentals cover with flexibility to add further options, including Legal Expenses, to suit each client’s needs.
Brokers can fill the knowledge gap
This combined cover presents brokers with an important opportunity to provide value to their clients – regardless of whether those clients currently have professional indemnity insurance. Consider these scenarios:
- Companies already in the marketplace: When brokers encounter businesses that already have professional indemnity combined cover, they can still demonstrate the comparable value they offer through Travelers and their brokerage.
- Companies just entering the marketplace: These businesses may have individual covers but be unaware of the combined option, giving brokers the opportunity to demonstrate the value of combined protection and offer to quote it.
- Companies that show no interest: When businesses don’t see the benefit of professional indemnity combined cover or say they are happy with what they have, brokers can ask them questions that target specific risks or otherwise ignite their interest – then offer to provide a quote.
“Travelers Professional Indemnity Combined provides a great opportunity for brokers looking to build trust with new clients and offer added value to existing PI or Cyber clients,” said Forster. “Our combined package accounts for the specific risks that companies in the technology and emerging professions sectors face, so it can protect these businesses as they grow.”
Travelers PI Combined is available to eTrade now via the MyTravelers web platform.
Travelers’ dedicated SME Team of experienced underwriters are also available to help you and your clients get the right combination of cover and can be reached as follows:
By email: SMEIreland@travelers.com
By phone : 01 609 5680
You can also contact your local Travelers representative for further details on how Travelers can help you.