Are you responsible for arranging PII for your firm? If so, it is extremely important that you know about the factors that affect the level of cover your firm purchases.
Here are 4 points to consider that will help you make an informed decision when buying PII
- When purchasing your cover, bear in mind that professional indemnity claims can take many years to reach a settlement, in some cases up to 10 years for large claims. It is important to note that the level of cover you hold when a claim is initially notified will be fixed, so consider whether this cover will still be sufficient at the time of settlement.
- Make sure you factor into account that a claimant’s legal costs can double the total of a PI claim. Your PI cover will therefore need to protect you against not only the potential client settlement, but the associated legal costs of the client as well.
- The statutory interest incurred throughout the duration of a PI claim can significantly increase the total cost
- Expect the unexpected and try to envisage worst-case claims scenarios. Your own defense costs and expenses are usually covered, as well as your limit of indemnity, so you should not need to take this into account.
Under-protecting your firm is an unnecessary and dangerous risk, particularly when current insurance rates are low. Contact us for more information on how to adequately consider your firms true exposure and get an appropriate level of cover.
Call +44 (0) 845 251 4000
Email info@professionalindemnity.co.uk
