Frequently asked questions

Why do I need professional indemnity insurance?

For most industry-regulated professionals, it is a regulatory requirement to have some form of professional indemnity, for example, those working in the legal and finance markets e.g. mortgage brokers, IFAs, estate agents, solicitors, chartered accountants etc.

For others, such as debt management firms, bailiffs and will writers, PI cover is recommended to provide you with protection in the event of a complaint or allegation being made against you. There are many other trades whose key personnel find the peace-of-mind associated with PI a great comfort.

What is ‘claims-made’ insurance?

Put simply, claims made means your policy will respond to complaints notified whilst the policy is active or in force. If there is no policy in force at the time a complaint is notified then no cover is available.

What is a retroactive date?

If you have had PI cover in place for a number of years, or you transfer your insurance to us from another provider, we will normally apply a retroactive date back to when you first took out your PI cover.

However, where you have not previously been trading, or you are starting a new business, we would normally issue your policy with a retroactive date. This means the policy will provide protection for business conducted in the past, so long as it is after the retroactive date. In most instances, the retroactive date will be the date cover is first taken out with us.

What is run-off cover and why do I need it?

Once cover under your ‘claims-made’ policy has ended, no further claims can be made on that policy, unless you have arranged run-off cover. Run-off cover continues to provide protection after you have ceased to practice in case any claims arise from your previous professional business activities. We can provide run off cover on an annually-renewable basis with a reducing scale of payments.