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Professional Indemnity Claims in the Credit Crunch

Some of our clients are experiencing an increase in the frequency of claims against them, which we feel may be a direct result of the current economic climate. We have certainly experienced an increase in alleged negligence; as a result of counter-claims for fees our clients are owed. Such cases are notifyable claims under your PII Policy.

In addition, we have recently experienced some Clients are not notifying claims to us immediately. For clarity, if anyone at your company becomes aware of a claim or circumstance which could give rise to a claim against you, whether verbally or in writing, regardless whether you consider the claim to be without merit or the quantum under the policy excess, you must report this to us as soon as possible. This includes counter claims for outstanding fees.

Insurers are dealing with more claims. They are paying more claims and looking at policy conditions more closely at present.

Failure to notify a situation immediately could prejudice the position of your company and the position of Insurers. This may lead to a breach of the policy terms and conditions and the rejection of a claim by the insurers in the future.

If you have any doubt as to what constitutes a material fact or claim and/or circumstance please contact us for advice.

IMPORTANT NOTICE
Claims will be notified to insurers between 9am and 5pm from Monday to Friday, (excluding bank holidays). Some insurers stipulate that acceptance of any notification must be received by their own claims department before confirming indemnity. If your policy expires outside of business hours and you have a claim to notify, Brunel Professional Risks Ltd will not be responsible for any matters not accepted by insurers. If you have an urgent matter, please contact us by telephone to discuss the position in the first instance.