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Professional Indemnity (PI) insurance is designed to shield you from potential claims that may arise from actual or alleged errors, omissions, or negligence in the services you provide. PI policies typically require policyholders to notify insurers of any potential claim circumstances as soon as they become aware of them. However, we often find clients are hesitant about notifying their broker about potential claims. This article outlines why early notification is actually beneficial.
Hesitation in notifying potential claim circumstances can be driven by a range of factors. Two common ones include:
Clients often worry that early notification might lead to an increase in their insurance premiums. While certain factors (such as the severity of the circumstances or a history of claims) can impact premium adjustments, it is crucial to remember that insurance providers evaluate each situation individually. As brokers, we advocate on your behalf and help present the circumstances in the best possible light to insurers.
Clients may feel uneasy about admitting potential errors or mistakes, for fear of damage to their professional reputation. However, early notification is not an admission of guilt. Instead, it is a responsible and proactive approach to managing risks. Insurance providers are there to support you in the event of potential claims, not to pass judgment.
While this may seem like an additional administrative task, early notification offers several significant benefits:
By promptly notifying your insurance provider of potential claim circumstances, you fulfill your policy's requirements. This ensures that you remain compliant and eligible for coverage in the event of a claim. Failure to notify potential claim circumstances may result in the denial of coverage, leaving you exposed to substantial financial risks.
Early notification allows us to work with you to assess the situation, guide you on the next steps and arrange resources to support you. We can advise whether the matter is a notifiable issue and how to protect your position and your coverage if it becomes necessary to rely on your policy.
Our primary goal is to be your advocate and guide throughout the claims process. We are here to address concerns you may have and provide you with the necessary support:
Confidentiality and Trust
Rest assured that any information you share with us regarding potential claim circumstances will be treated with the utmost confidentiality. We understand the sensitivity of these matters and we’re committed to maintaining your trust.
Expert Advice
Our experienced team has in-depth knowledge of professional indemnity insurance and the intricacies of potential claims. We will help you navigate the claims process smoothly and minimise any potential impact on your business.
Negotiation and Advocacy
In the event of a claim, we will act as your advocate and negotiate with the insurer on your behalf. We will leverage our expertise and understanding of your policy to help you receive fair and comprehensive coverage.
Early notification of potential claim circumstances is vital for maximising the benefits of your professional indemnity insurance. As your trusted insurance broker, we are here to assist. Feel free to reach out at any time to discuss your PI needs.
James Machray
Client Manager
