Professional Indemnity Insurance (PII) is necessary for firms regulated by the FSA.
However, do you know why?
In simple terms, a Professional Indemnity policy is there to protect the policyholder in the event that a claim is made against them alleging bad advice has been given to a third party in the same way that a motor policy will protect the policyholder should they be involved in an accident.
Unlike most other insurance policies, the PII policy is written on what is known as a 'claims made' basis which means that it is the policy in force at the time of first awareness of a claim or circumstance arising that will, subject to the terms and conditions applicable there under, respond to provide indemnity and not the policy which was in force at the time the advice was given. In this respect, Run off cover is often recommended.
Professional Indemnity policies, like other insurance policies contain a host of important clauses which will determine the coverage being afforded, many of which will not be understood by the policyholder. Click here for a basic guide to the more important terminology.
PMS, in conjunction with Windsor Partners Limited, can now offer exclusive access to a new Professional Indemnity Insurance facility for its members. For more details, click on the logo below, or alternatively click here.