The Situation
A project manager had recently started their own construction management consultancy after years working for larger firms. With only one year of independent trading history and revenue under $200,000, they needed $1M PI cover to meet client requirements and industry expectations. The limited track record as an independent operator was the main barrier.
Our Approach
We submitted to six insurers simultaneously. The submission emphasised the manager's extensive prior experience at established firms, the nature of the construction management work (oversight and coordination, not design), and the conservative revenue base. We made sure underwriters could see the quality of the professional background, not just the short independent trading history.
Challenges
Three of the six insurers declined. Two cited insufficient trading history as a sole operator, and one couldn't accommodate the occupation class. The remaining three quotes came back with a significant spread - from approximately $2,900 to $4,150 for identical $1M PI cover. That's a 43% difference for the same coverage, which shows why getting multiple quotes matters.
The Outcome
We placed cover through Woodina at approximately $2,900 for $1M PI. At renewal the following year, with an additional year of claims-free trading under their belt, the premium dropped to approximately $1,200 - a 59% reduction. Building a clean insurance history in year one created significantly better terms in year two.
Broker Insight
If you're a new construction manager, expect some insurer pushback in year one. Don't let that stop you - there are markets that will assess you on your professional background, not just your ABN age. And the investment in proper cover from day one pays off at renewal when you can show a clean claims history.