When it comes to a Professional Indemnity claim, you need to notify us of any claims or ‘circumstances’ that may develop into a claim against you immediately.

It is usually easy to identify a claim as there will often be a clear indication from a claimant of their intention to claim compensation against you. This can be in the form of allegations of negligence conducted by you/your company and will establish some form of actual or potential loss.

If you become aware of a claim, or you identify a state of affairs that might develop into a claim (a ‘circumstance’), it is vital that you do not do any of the following, as by doing so may affect your right to be indemnified under your policy as a result of prejudicing your insurers’ position:

• Admit liability
• Make any offer to settle the problem
• Incur any costs or expenses without your insurers’ prior approval
• Reply to any correspondence from your client or a third party. Forward the correspondence to your insurer immediately so that they can discuss the appropriate response with your insurers, as all replies have to be authorised by your insurers.
• Take any action which might prejudice your insurers position or their ability to examine the problem.
• Disclose details of your professional indemnity policy, your insurers, or reveal to the claimant that the problem has been reported to your insurers.