Accountants

You should assess the greatest loss that might result from a mistake on any particular project/contract. Ultimately, no one will take on your responsibility to ensure you have enough cover, but you should carefully review this area with your broker. We're here to help.

Not all policies cover work overseas automatically, so make sure to check the terms of your policy. If not covered already, arrange with your broker for the necessary amendments to be made.

Most policies will protect you against claims made against you in the UK, but if you want to be defended abroad you may need to change the 'jurisdiction clause'. This must be correct to ensure your activities are covered.

Ensure to tell your broker about all your overseas work, especially if you change this during your policy period.

Unlike many liability insurances, Professional Indemnity is underwritten on what is known as a ‘claims made' basis. This means that the policy will only provide cover for incidents that are discovered and notified to the insurers during the period of insurance.

Your policy will provide cover for advice given in previous years, often limited to a retroactive date. It is important to note that if you want to continue with the protection, Professional Indemnity cover provides you to keep renewing cover, or buy 'run off' cover.

If you are closing your company or are a sole practitioner/partnership and are retiring from practice that does not mean that claims will not arise on work undertaken in prior years. Whilst the majority of claims are made quite quickly, it is still possible for a claim to go back many years, and for this reason most insurance professionals will recommend a minimum of six years' run off cover. If no policy is in place at the time a claim is made, then you may face liability which can not only be traumatic, but financially devastating.

The retroactive date refers to the date from which work undertaken is covered. For example, a current Professional Indemnity policy with a retroactive date of 1st January 2005, will provide cover for claims arising out of work undertaken on or after 1st January 2005.

Any work prior to this date will be excluded. If no retroactive date is shown, or if it is noted as ‘None’, the cover is provided relating to all work that you have undertaken previously (subject to that work falling within the scope of activities declared to Insurers).