Miscellaneous business is just that - business that doesn't fall into one of the standard classes such as Architects, Accountants, etc. There is a proliferation of new professions and some of these will become standard classes in due course. Many of these risks are sole traders offering specialist services, many of whom fulfil services that are now out-sourced by former employers. Of course, there are sizeable segments within the miscellaneous field, such as agricultural consultants. These are often more exposed to claims.

Perhaps because risks aren't 'standard classes', miscellaneous business has been very profitable, historically. This is why most PI insurers say that they want to see more of it. It is perhaps the only class of PI that has been profitable for a long period of time. But as people now more readily turn to the law when dissatisfied with service, so even miscellaneous loss ratios are expected to deteriorate.

What do Insurers look for?
With standard professions, one expects standard qualifications. With miscellaneous business, the insured may not be qualified in the formal sense at all. So sight of a CV is a normal requirement unless the insured has been trading for a while.

Every insurer has a different perception of the type of business that they want. Some will write very nearly anything, others want only specific business. Here are some examples, coupled with some commentary:

Actuaries

• Error in the costing of company pension led to inflated cost to the client. Errors can lead to insurers under-reserving.
• Infrequent claims but they can be enormous. Moderate to high risk.

Agricultural consultants

• Incorrect advice regarding pesticides led to damaged crop.
• Claims are not uncommon. Some insurers worry about the pollution exposure. Moderate to high risk.

Bailiffs

• Seized and disposed of goods belonging to incorrect party.
• Firms with multiple claims are normally avoided. Moderate risk.

Freight forwarders

• Goods damaged in transit, allegedly due to insured's failure to take adequate precautions.
• Moderate risk.

Interior designers

• Available space was less than promised.
• Low risk, unless they take on responsibility for structural matters (e.g. if they sub-contract design for moving a load bearing wall).

Management consultants

• Most claims derive not from strategic consultancy but from liability incurred from mainstream tasks such as quality assessment, computer consultancy, etc.
• Low risk but some have large claim potential. Interim managers need to describe exactly what services they provide. Some may be quite hazardous, e.g. if they are able to make executive decisions.

Naval architects

• Instability of ferry.
• High risk.

Patent agents

• Patent not effective in desired countries.
• Moderate to high risk.

Property managers

• Missed rent reviews. Failure to select satisfactory tenant.
• High frequency but low value (except for commercial rent reviews). Higher than usual excesses normally apply.

Publishers

• Libel, infringement of copyright. Errors in publication - e.g. formula, design, etc., withdrawal costs.
• Moderate risk. Very much depends on content.

Safety consultants

• Certification errors causing injury - e.g. lifts, industrial machinery, play equipment, fairground rides. Dangerous goods being carried improperly causing injury.
• Low likelihood but high value if a claim.

Scientific consultants

• Exposure very much depends on what they do. If they test materials, for example, wrong calibration or certification can cause substantial claims.
• Generally low risk.

Trade association

• Libel claim following ejection of member. Negligent advice to members of public regarding trade's products.
• Low hazard but varies according to type of member.

Yacht surveyor

• Pre-purchase inspection failed to spot damage to hull.
• High risk. Higher than usual excesses normally apply.

Yacht broker

• Mis-described output of yacht's engine.
• Low risk, unless they also do surveys.

A proposal form is available in Adobe Acrobat format by clicking the links below.

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