If there’s only one insurance name you’ve heard of, it’s probably Lloyd’s of London. Lloyd’s is one of the biggest and oldest insurance players in the world. It famously began in 1688 in a coffee shop in London, and in many circles its name is now a byword for financial strength, trust and reliability.
So it was a source of great pride when, several years ago, AWIB was ‘given the pen’ and became a Lloyd’s of London Coverholder. There are approximately 100 Coverholders in Australia, and only around 10 of them are brokers like AWIB.
Being a Lloyd’s of London Coverholder is a big vote of confidence in us, and it means we can give fire protection companies a more tailored solution, more certainty around claims and lower premiums.
What’s a Lloyd’s of London Coverholder?
Lloyd’s of London is a massive organisation, and there are numerous layers between those who provide the funding to pay out claims and the insurance policyholder (you).
Lloyd’s is an insurance and reinsurance market. Rather than being a single company, it’s a corporate body governed by an Act of Parliament in the UK. Within it, around 200 syndicates provide the capital to underwrite insurance policies all around the world. If any one of those syndicates runs into financial difficulties, Lloyd’s itself guarantees the syndicate to ensure insurance claims get paid.
It’s such a large entity that you can’t deal directly with Lloyd’s or its syndicates – you have to work through a dedicated Lloyd’s broker.
Coverholders, however, have been given Binding Authority by a Lloyd’s syndicate (or their managing agent) to accept insurance risks, enter into contracts, handle insurance money and handle claims directly on the syndicate’s behalf.
That enables Coverholders to design their own custom insurance policies and set their own premium structures.
As a Lloyd’s of London Coverholder, AWIB has been granted authority to write Public Liability (PL) and Professional Indemnity (PI) insurance for those in the fire protection industry in Australia and New Zealand.
It means AWIB has been able to write a bespoke insurance policy for the fire protection industry which exactly caters for the risks it faces, and this policy has the direct backing of Lloyd’s of London.
We’re the only insurance broker who specialises in fire protection in Australia or New Zealand who has this kind of relationship.
Becoming a Lloyd’s of London Coverholder
Being able to sign contracts on behalf of the most famous insurance organisation in the world doesn’t come easily. Lloyd’s of London is hugely protective of its brand and reputation, and they expect the highest standards for those operating in their name.
The process to become a Lloyd’s of London Coverholder took AWIB years to complete, and required us to demonstrate our credibility, expertise and historic results.
The process involved exhaustive interrogation by Lloyd’s management at their head office in London of our ability to manage risk and underwrite for the Australian and New Zealand fire protection industry. Since being approved as a Coverholder, we must regularly travel to London to meet with our Lloyd’s broker and syndicates.
What’s in it for our clients?
If you hold PI or PL insurance through AWIB’s Fire Protection Industry Insurance (FPII) scheme, your policy is backed up by Lloyd’s of London, which has a reputation for never having failed to pay a valid claim. AWIB has authority to manage FPII insurance claims.
Because AWIB is able to issue our own policy wording as a Coverholder, FPII policies are specifically designed to cover the risks fire protection businesses face. Working on a mine site or oil rig? Exposed to combustible cladding issues? FPII covers you, where a general PI and PL policy might leave you with gaps or exclusions.
Not only is it a great honour for AWIB to hold the trust of Lloyd’s of London required of a Coverholder, it also means that we can offer the fire protection industry the best PI and PL insurance on the market through the FPII scheme.
GET IN TOUCH
Learn more about how the backing Lloyd’s of London gives AWIB’s Fire Protection Industry Insurance can help safeguard your business.