Professional indemnity insurance
Any professional or company offering advice or services can be held financially accountable if things go wrong.
Professional indemnity cover protects a professional business from a financial loss which may arise as the result of a claim made against them for an alleged breach of their professional duty. It covers the policyholder's defence costs as well as providing an indemnity for the claim itself up to an agreed/specified level.
Businesses are spending more on professional advice and services than ever before. Claims trends show that professionals are increasingly vulnerable to being sued for negligence by clients who are increasingly aware of their legal rights. Even an unfounded allegation of poor advice needs to be investigated and defended, often at considerable cost to the business. What's more, many clients will now only employ the services of professionals who carry adequate professional indemnity cover.
One important aspect to bear in mind when considering professional indemnity insurance is that you need to be covered both at the time of the event and when the claim is made. This is because there can often be a long delay between an event and a subsequent claim. So, if you plan to cancel your policy when you close your business or retire, you may need to arrange "run-off" cover for a period of time afterwards.
Also, if you plan to change insurers, you will either need to arrange run-off cover or get agreement from your new insurer to accept new claims for prior incidents.
Please contact your Relationship Manager or
| Lionel Thomas Tel: 020 7977 1776 |