How Professional Indemnity Combined cover can protect SME businesses in good times and bad


Professional Indemnity Combined cover can help your small business clients mitigate their risks

Running a small business isn’t easy – particularly in this economic climate. Inflation in the UK is currently at a 41-year high and economists anticipate a lengthy recession. Understandably, many of your SME clients may feel the need to tighten their belts – whether as a necessity or simply as a precaution. At the same time, SME businesses face new risks that may feel beyond their control – their end clients may suddenly be unable to pay for services. Other clients may try to avoid or delay payment, perhaps claiming that the business has not delivered a requested service on time.

Protecting against these risks can shield a small business from larger problems that can arise in a difficult economy. At Travelers, we’re dedicated to helping SME business clients anticipate and manage different risk scenarios they are facing. For example, our Professional Indemnity Combined product can support the effort by mitigating the breach-of-contract risks that tech businesses are more likely to experience in times like this. More brokers have been placing PI Combined business with Travelers in the current climate, particularly for marketing/PR, management consultancy and tech companies.

These are some of the challenges that businesses in these spaces have been facing and the actions they can take to best protect themselves:

Marketing companies: Right now, most small businesses are not in the position to increase their marketing spend; if anything, marketing is an area where businesses are likely to make cutbacks first. As a result, small businesses that specialise in marketing may suffer. If their end clients are experiencing a reduction in cash flow, they may scrutinise the company’s work and fees. But marketing businesses can minimise their risks by implementing strong project check-in processes to ensure the end client is in agreement every step of the way as work is being completed. PI Combined insurance can further protect the business in case their end clients cite ‘wrong or poor marketing advice’ in an effort to point blame if their business is failing due to financial reasons.

Management consultancies: These businesses shoulder a great deal of responsibility in a difficult economy. Their end clients are paying them for advice that could potentially make or break their business – particularly if their cash flow is low or they are in the midst of an important transition. Such scenarios are common at the moment and require management consultancies to protect themselves against claims of poor advice.

Tech firms: In the past couple of years, the drive to acquire technology to make businesses operate faster and more efficiently has become more urgent. If the implementation of new technology is delayed, or a tech firm recommends the wrong software to an end client, there could be devastating consequences for both parties. The 'breach of contract' cover included in PI Combined protects tech businesses in these instances, and the automatic worldwide cover also gives them additional reassurance that they’re covered wherever their end clients are in the world. Advice to tech business clients would be to ensure tight sign-off procedures are in place and to protect themselves by mitigating losses by capping liability and excluding consequential loss by contract.

Great expectations

In the current economy, it’s especially important for small business owners to define all parties’ expectations about the advice and service they provide and ensure clear communication from start to finish. Having the right risk management and insurance protections in place can help them focus less on their exposures, and more on delivering their best work for end clients.

Keep Travelers in mind for all of your clients in these spaces. Visit the MyTravelers portal or Acturis trading platform for quick online quotes, and, as always, feel free to get in touch with questions about PI Combined and how we can partner with you to best protect your clients. In good times and bad, we want to help you set them on a course to thrive.

Authored by Travelers

The information provided in this document is for general information purposes only. It does not constitute legal or professional advice. Insurance coverage is governed by the actual terms and conditions of insurance as set out in the policy documentation and not by any of the information in this document.


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We wrote the first auto insurance, the first aircraft liability insurance, and even the first personal accident cover for astronauts.

In today’s fast-changing world, this  heritage of adventure really counts. With an extended network of underwriting, claims management, and industry experts in 125 countries, we’re here to insure your clients’ ambitions – no matter their size and scope. Our expertise and experience deliver policies that help them continue their journey.

With businesses facing ever more emerging and evolving issues, our suite of insurance products offers bespoke cover for each risk, and our commitment to genuine, caring partnerships means we’ll always be there to advise and support our clients and our broker partners, – whatever the future holds.

The Travelers Companies, Inc. (“TRV”) is a leading provider of property liability insurance for motor, home and business. The Group has more than 30,000 employees and operations in the United States, Canada, UK and Ireland.

The group has total assets of approximately $110 billion, shareholders’ equity of $26 billion and total revenue of $32 billion, as of December 31, 2019. Our European based operations offer our customers a wide range of coverage through Travelers Insurance Company Limited, Travelers Syndicate Management Limited (Syndicate 5000 at Lloyd’s), Travelers Underwriting Agency Limited and Travelers Insurance Designated Activity Company.