10 Points to remember prior to the renewal of your Professional Indemnity Insurance

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1. Businesses should make the earliest possible application for renewal of cover. Making an application close to the deadline is not viewed favourably by insurers

2. Make sure that you give yourself enough time to complete the proposal form correctly and get the necessary documentation together

3. It is essential that you complete the proposal form comprehensively and accurately. Ensure your responses are legible, easy to read and well-presented. Try to avoid submitting hard written proposal forms. Include any extra information you feel may be helpful to clarify any points. Be extremely descriptive of your professional services and any related or additional services you provide including peculiarities

4. You can also submit your CV along with your proposal form to provide as much information to the Underwriter

5. Check what insurers your broker will be sending your completed forms to

6. Use the covering letter with your proposal form as a method of “selling” your firm to the broker

7. Check and check again – Approximately two-thirds of forms received by insurers are incorrectly filled out. This delays the obtaining of a quote by the firm and does not reflect well on the firm

8. Respond promptly to any requests for further information or clarification from your broker or insurer

9. Seek regular updates from your broker on the progress of your proposal if they fail to provide them. Insurers must confirm whether they are willing to cover a firm and provide a quote within 15 working days of receiving a properly completed proposal form

10. Quotations from insurers must remain in effect for 21 working days or until the expiry of the previous coverage period, whichever date is earlier. Make sure that you confirm your decision on the offer before the offer expires

Top Tip: Keep a copy of your proposal form each year so you can review your previous application on a yearly basis.

Click here for More Information On Professional Indemnity Insurance With S.A Faughnan

Remember: A Professional Indemnity policy is a ‘Claims Made’ policy which means that the policy in force at the time a claim is made is the policy which has to pay the claim, it is not the policy in force when the incident occurred.  Therefore it is essential that you renew your Professional Indemnity policy each year because insurance cover will stop once the policy stops. Even if you cease trading, it is important to consider “run-off cover” for a number of years to avoid leaving you exposed to a possible claim and no cover.