Frequently asked questions and answers

"Will insurers increase my premium because I have notified a claim or circumstance which may give rise to a claim?"

Answer: Insurers will only normally apply an increased premium if it becomes apparent that the insured has been negligent and there is a strong possibility that a payment will need to be made. Insurers do not penalise you for making precautionary notifications.

"What duties are there to me, under my Professional Indemnity policy, to notify insurers of claims and/or claim circumstances?"

Answer: All professional indemnity policies incorporate conditions precedent to insurers liability to indemnify you under the terms of your policy which impose a duty on you to notify insurers of:-

  • Any communication whether in writing or oral intimating a claim or an intention to make a claim against you arising from any professional neglect in the conduct of your business, or for any loss which may be covered by the policy
  • Any circumstances which may give rise to a claim against you
  • In addition, any notification of a claim or circumstance should be made immediately and before expiry of the policy otherwise there is a substantial risk that insurers may refuse to indemnify you

You should refer to your policy wording in respect of these conditions and familiarise yourself as failure to adhere to the policy terms and conditions could result in losing your right to indemnity or payment for that loss or claim.

"If a claimant or their representative makes contact with me, is there any initial advice that you can give me?"

Answer: If a claim is made against you, you must not make any admissions of liability, nor make any offers of settlement, without the prior agreement of insurers. In addition, you should not disclose to any party that you have notified your professional indemnity insurers.

In the event that you are contacted by a claimant or their representative, contact us immediately for further assistance.

"What is the difference between a claim and a circumstance?"

Answer: A claim means a demand for, or an assertion of a right to, civil compensation or civil damages or an intimation of an intention to seek such compensation or damages.

A circumstance means an incident, occurrence, fact, matter, act or omission which may give rise to a claim in respect of civil liability.

A circumstance can be an instant, complaint or expression of dissatisfaction which may give rise to a claim arising as a result of your advice or services.

Our claims team are always on hand to answer any questions that you may have, please contact us if you have any queries.