INVESTMENT MANAGEMENT INSURANCE CASE STUDY
Corporate Advisory Consultancy, $1M and $2M PI Options From Three Specialist Markets
A principal with more than thirty years in corporate advisory, M&A and investment banking, now advising in clean technology and clean energy, wanted PI priced at two limits. Three specialist markets quoted both.
THE SITUATION
A corporate advisory consultancy came to Tank Insurance for professional indemnity. The principal had decades of corporate advisory and investment banking experience and was now focused on the clean energy sector.
The consultancy wanted PI at $1 million and $2 million so it could choose the limit with the price of each in front of it.
OUR APPROACH
- Three specialist financial lines markets were approached and each quoted both limits.
- At $1 million the quotes ran from approximately $11,500 to $12,100. At $2 million they ran from approximately $15,000 to $16,200.
- One market's terms were conditional on copies of the contracts with, and CVs of, the consultancy's contractors. The others quoted on the proposal.
- The step from $1 million to $2 million was small at the placing market, around $2,900, and the client took the higher limit.
THE CHALLENGES
Corporate advisory is priced on what the advice could cost a client if it is wrong, so the markets that quoted priced it closer to financial institutions PI than to general consulting. Presenting the principal's track record and the sector focus in the terms those markets use is what produced three comparable quotes rather than referrals.
THE OUTCOME
$2 million professional indemnity was placed with Keystone at a premium of approximately $15,000 a year.
Final Solution: $2 million PI for a corporate advisory consultancy at around $15,000 a year, chosen with $1 million and $2 million quotes from three markets side by side.
This case records one historical outcome; current insurer appetite, premium, timing and terms depend on the complete risk at the time of application.
For the wider buying context, see our investment management insurance guide and the high-limit professional indemnity page.
ADVISORY FIRM QUESTIONS
What this placement answers for other corporate advisory firms
How much does PI cost for a corporate advisory consultant?
Should I buy $1 million or $2 million PI for advisory work?
Why did one insurer ask for contractor contracts and CVs?
INVESTMENT MANAGEMENT INSURANCE
Put this placement in context
Case-study results are historical and are not a promise of current pricing, capacity or policy terms. This page is general information only and does not take account of your objectives, financial situation or needs.
More Case Studies
All case studiesMultidisciplinary Engineering Consultant, Renewable and Overseas Exposure
PI and PL placed for a multidisciplinary engineering consultant after several markets referred or declined over renewable energy and overseas exposure.
Read case study Professional IndemnityAdvisory Firm With Professional Standards Limit
Advisory and accounting firm secured a $2.5M costs-inclusive PI structure after markets declined or referred
Read case study Professional IndemnityNew Tax Agent Startup, TPB Limit Review
Startup tax agent and advisory practice compared TPB limit options and placed Keystone PI terms
Read case studyAdvisory Work With Real Money Behind It?
Tell us the sector, the deal sizes and the limits your clients ask for. We take corporate advisory to the specialist markets and price two limits side by side.