If ever a risk demonstrates that perseverance and obtaining a detailed picture of the insured’s business pays, it’s our June placement of the month.
Last April, we were appointed by a sub broker to replace the primary layer cover for one of the UK’s largest alternative providers of wholesale fibre network infrastructure – we placed them at just under £30,000. Despite a pre-renewal meeting with the sub broker in February and several reminders, the renewal submission wasn’t provided by the insured until a day before the policy expired. Whilst on extension, insurers began to scrutinise the submission – it became apparent that the risk had been incorrectly rated for years. Unlike most design and construct risks, this insured pays the “build costs” for the laying of fibre optic cabling networks themselves via debt financing and capital raising. Their “turnover” came from usage fees paid for by their telecoms clients. In terms of numbers, the difference was £167m and not £22m. Unsurprisingly terms were increased, initially to £180,000. Thankfully, after 6 weeks of post renewal date negotiation and commitment by the insured to take on a £250,000 deductible, terms were agreed at an improved premium. Brunel was additionally appointed by the sub broker to place the excess layer cover.
An incredible result. This case is a perfect demonstration of our team’s expertise, dedication and market relationships.