The first Professional Indemnity (PI) insurance policies were underwritten over 90 years ago and the product has evolved ever since.
The core purpose of PI is to protect an insured firm or individual in the event of any negligent errors or omissions made during the course of its professional activities. The policy will pay out for damages and cover the defence costs incurred in valid claims. Nowadays, there are often additional elements of cover and specialist products have been tailored for many businesses, many of which would not traditionally have been regarded as professional.
Having PI cover in place therefore helps protect the firm, its owners, employees and clients. Importantly, for many professions it is a compulsory requirement of their regulatory or professional body.
In most of the world, PI is underwritten on a “claims made” basis. This means that it is the policy in force at the time a claim is made that responds, not necessarily the policy that was in place at the time the negligent act occurred. In practice, this means that a claim could be made on a current policy for work that was done years previously.
This basis of cover means that it is important to always consider the past and present exposure of a firm in deciding an appropriate policy limit, and maintaining this to continue protecting the firm against future claims. It’s also important to watch out for limitations to this “retroactive” cover and to understand how they will impact on the PI cover’s response.
MGB are specialists in arranging PI insurance, including for the following professions:
Accountants
Actuaries
Architects
Business Consultants
Design & Construction
Engineers
Estate Agents
Financial Advisers
Fund Managers
Insurance Brokers
IT Professionals Media
Medical Professionals
Other Professionals
Recruitment Agents
Solicitors
Surveyors
The service we provide to our clients does not cease once a policy is arranged. We are on hand throughout the policy year to provide technical assistance on policy matters and arrange any mid-term changes to policies that may become necessary.
We also have an in-house claims team who will assist in the presentation of claims to Insurers and help to manage claims and potential claims from first notification through to file closure. Our aim is to adopt a proactive approach, whilst providing a personal, professional, efficient and friendly service.
For more information or to talk about your specific needs, please contact us.