Changes made to the ICAEW’s PII regulations
Professional indemnity insurance (PII), is compulsory for all ICAEW members who have a practising certificate and engage in public practice.
In order to be eligible for a practising certificate ICAEW members and member firms must comply with the ICAEW's PII regulations. The PII regulations give details of the amount of insurance required, insurers and the policy wording insurers must use.
An important piece of new insurance legislation (the Insurance Act 2015) introduces a new ‘duty of fair presentation’ which insureds will owe insurers when entering into business insurance contracts. This duty of fair presentation has resulted in a number of changes to PII and the ICAEW’s PII regulations.
The Insurance Act 2015 came into force on 12 August 2016 and affects all policies which incept or are renewed, and variations of existing policies on or after this date.
To view the ICAEW’s PII regulation, visit their website.
ICAEW members seeking to take out or renew their professional indemnity insurance are strongly recommended to seek their broker’s assistance in determining how the new duty will affect their firm.
As the ICAEW’s appointed broker for PII we have prepared an interactive guide to help businesses understand the changes brought in by the Insurance Act 2015 and provide practical advice on what business owners need to do differently in order to meet their obligation to make a fair presentation of their risk.
If you would like more information please call us on 0345 894 4684.