Despite a good claims record, UK labs have experienced spiralling premiums - some by as much as 300% - putting them in the same bracket as some of the highest risk industries
Howden Insurance Brokers, an independent Lloyd's broker specialising in professional indemnity (PI) and directors and officers (D and O) insurance, has launched the only PI scheme tailored to meet the needs of Ukas accredited testing laboratories.
For the first time, testing laboratories will have access to a bespoke policy providing full civil liability cover - giving them broad insurance cover with a specific policy wording geared to meet their needs and deliver greater value for money. Paul Stennett, Ukas chief executive, comments: "Accredited laboratories in the UK can now enjoy access to affordable insurance at competitive market rates.
"It is refreshing and encouraging to see two of the benefits of accreditation, those of minimising risk and enhancing market access, acknowledged by insurers.
"We believe this new policy offers real benefits to accredited laboratories and hope that the same recognition will be extended in due course to calibration laboratories, certification and inspection bodies".
Despite a good claims record and Ukas accreditation status, UK labs have experienced spiralling premiums - some by as much as 300% - putting them in the same bracket as some of the highest risk industries including engineering and surveying.
Howden's new PI product has been designed to acknowledge Ukas standards and provide labs with a policy which reflects their individual exposures, and offers them an acknowledged first rate claims service.
Lance Rigby, director of PI at Howden Insurance Brokers explains, "Testing laboratories apply stringent quality controls to their day-to-day activity, particularly those who have Ukas accreditation. "Yet the insurance industry has been slow to recognise their professionalism and, regardless of their area of specialty, imposed increasingly higher premiums.
"We have worked closely with both lab owners and insurers to create a policy that is relevant to the unique challenges and exposures faced by different laboratory sectors, and recognises the rigorous processes in place.
"We have paid particular attention to the proposal form, tailoring the wording to make it specific to labs so that insurers will have an accurate picture of each individual business.
"This should lead to far more competitive pricing and help ease the burden that labs are currently suffering".
John Richards, managing director of Thames Labs comments, "I have witnessed PI insurance premiums rocket indiscriminately.
"Despite our Ukas accreditation, the insurance industry has previously broad brushed labs as high risk.
"We welcome the new scheme from Howden and look forward to being offered a tailored and fair risk assessment of our own business with policy wording and premium to suit".
The facility, backed by A-rated guaranteed capacity to ensure consistent pricing, is available directly from Howden Insurance Brokers.
Proposal forms and policy wording will be available online from early 2004 and Howden plans to develop a web-based quote engine in the coming months.
