How important should these be when you’re choosing your locum insurance?

How can you tell if the company you’re proposing to use is a good bet?

Premiums

How often – in the past few years – have the company’s premium rates changed?

Some companies charge according to the age of the client and some don’t. Due to EU rules, companies are not allowed to charge according to sex. Some will also adjust premiums when a policy has been underwritten.

This is all very interesting (or not, depending on your pov) but it’s not the nub of the issue. The question should be ‘over the past few years when did you change your premium rates and by how much did they rise/fall?’

The answer to this should indicate whether the assumptions that the underwriters and actuaries made when pricing the insurance have proved accurate or not.

If a product is priced optimistically keenly and the underwriters’ claims experience is worse than anticipated, this can lead to rises in premium – for everyone, not just the claimants – for years to come.

What you are looking for is an underwriter who understands the market and has priced his insurance on a stable, sustainable basis.

If he hasn’t then you could bear the brunt of this when your premiums rise to compensate for other clients’ claims.

Author: Lynda Cox, Director, Practice Cover – specialists in locum insurance

The opinions presented in this blog are solely those of the author on behalf of Practice Cover Limited and they do not constitute individual advice. Practice Cover is a trading name of Practice Cover Limited and is authorised and regulated by the Financial Conduct Authority

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