Claims Management indemnity insurance

Many claims arise through misunderstandings, which may be difficult to substantiate without documentary evidence. Conduct all your business as professionally and openly as possible, maintaining a full audit trail of the business conducted in the process. Claims management agents should have detailed terms of business in place with customers outlining the process, as well as service agreements with suppliers, such as packagers, lenders and ‘insurance and software providers’. Whenever possible, signatures should be obtained on documents. Written records of all meetings and telephone conversations with clients and providers should also be retained on file.

Claims procedure

If you become aware of any circumstance that could give rise to a claim, it is essential you notify your insurers immediately.

Warning signs include:

• Verbal complaints from a dissatisfied customer, or threats to take the matter further
• Letters of complaint alleging mis-selling, neglect, error or omission
• Allegations of financial loss or damage by providing incorrect products or poor service
• Complaints about the level of fees charged
• A client refusing or delaying settlement of fees

Once you have notified insurers of a possible issue, they will assist you by providing guidance on how best to conduct future dealings with the client. Depending on the circumstances, insurers may appoint legal advisers to assist you.

Please tell your insurers even if you only suspect that a complaint will be notified and they will provide feedback on how to deal with the matter.

It is important to understand that, should a complaint not be notified in time and it deteriorates into a serious matter, your policy may not respond to the allegations due to late notification. If in doubt, tell us.