Claims Management Professional Indemnity Insurance

Claims Management Professional Indemnity Insurance

If your business operates in Accident and Claims Management or handling Personal Injury Claims, then you are now legally obliged to have Professional Indemnity Insurance cover in place.

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Claims Management Policy Highlights

Cover Specific To Your Needs

We tailor our professional indemnity cover so that it not only meets, but exceeds the 2008 regulatory requirements. 

Claims can be very costly and can cause severe financial difficulties to companies that don’t have the appropriate PI cover in place. A professional indemnity policy will cover not only any claims payment that has to be made to a client but also the legal defence costs as well. Often it is the legal bills that represent the most significant element of the claim.

We certainly advise any client within the accident claims management sector to arrange the cover. We deal direct with the UK’s leading insurers which enables us to give our clients the best combination of premium and cover possible.

Useful Information On Compensation Regulations

The recent Compensation (Claims Management Services) (Amendment) Regulations 2008 (made pursuant to the Compensation Act 2006) make amendments to the Compensation (Claims Management Services) Regulations 2006.

The 2008 Regulations come into force in part on the 1st of July 2008, bringing with it a requirement for authorised persons who provide representation for claimants in the area of personal injury claims to take out and maintain professional indemnity insurance, complying with the specified minimum terms.

Regulation 3 of the Compensation (Claims Management Services) (Amendment) Regulations 2008 amends Regulation 21 of the 2006 Regulations, stating the requirements as follows:

Minimum terms of professional indemnity insurance

21B. —

  1. The contract of professional indemnity insurance must—
    (a) comply with the requirements in paragraphs (2) to (5);
    (b) provide cover where an authorised person or an employee —
    (i) represents a client in the course of providing or purporting to provide regulated claims management services; and
    (ii) may be liable for their actions.

The minimum level of indemnity in the contract of professional indemnity insurance must be –
(a) £250,000 for a single claim; and
(b) £500,000 for aggregated claims.

  • Where the contract for professional indemnity insurance includes an excess, this must not be greater than £10,000 per claim.
  • The contract for professional indemnity insurance must contain cover in respect of legal defence costs.
  • The contract for professional indemnity insurance must provide for continuous cover for all claims —
    (a) first made against the insured during the period of insurance; or
    (b) made against the insured during or after the period of insurance and arising from claims first notified to the insurer during the period of insurance.”

** text extracted from The Compensation (Claims Management Services) (Amendment) Regulations 2008

Why Do You Need Professional Indemnity Insurance?

There are many reasons for choosing to buy professional indemnity insurance, whether that be to meet contractual obligations or to comply with regulatory requirements. Your business may require this type of cover for the following reasons:

  • It involves giving advice to clients 
  • You provide a professional service
  • You handle information that is confidential in nature
  • You use material that is subject to copyright or intellectual property belonging to others 
  • You belong to a professional body and their rules stipulate that professional indemnity insurance is compulsory
  • A client insists your business arranges cover before they offer you work (a contractual requirement to have the cover)

Your business could face a claim if you provide negligent or inaccurate advice and as a result of that advice your client suffers a financial loss. Equally, if you infringe somebody’s intellectual property rights, they may claim for losses against you. Many businesses insist that their business partners or suppliers have professional indemnity insurance so that they are not reliant upon the supplier having sufficient funds themselves to meet such claims. 

Claims Management Professional Indemnity Proposal Form

We understand that your requirements may not be as simple as the questions asked on our online quote and buy system. Therefore we ask that you complete the following proposal form and a member of our team will be in touch with you shortly.