Risk context
Professional indemnity is generally claims-made: the policy in force when a claim is notified responds, not the policy in force when the work was done. Continuity of cover therefore matters more than in most classes.
Retroactive dates, notification conditions and run-off arrangements are where this class most often goes wrong.
Concepts that appear in this class
- Claims-made trigger
- Cover responds to claims made and notified during the period of insurance, subject to policy terms.
- Retroactive date
- Work carried out before this date is commonly excluded. It is easily lost when insurers change.
- Circumstance notification
- Policies usually require notification of circumstances that might give rise to a claim, not only of claims themselves.
- Run-off
- Cover after a business ceases or is sold is arranged separately and should be planned before, not after.
These are general descriptions of terms commonly used in this class of insurance. They do not describe your policy. Whether any of them apply, and on what terms, is determined by the wording, schedule and endorsements issued to you.
What moves the terms
- 01Professional discipline and the nature of advice given
- 02Fee income and the size of individual engagements
- 03Contract terms, including any uncapped liability
- 04Claims and circumstances notified historically