Don’t expect your PI insurance to cover you
Don’t expect your PI insurance to cover you!
That’s my advice to all the professionals out there, if you:
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Don’t review the policy wording each year; or
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Don’t complete the proposal form accurately; or
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Don’t consider and make appropriate notification of circumstances that may give rise to a claim; or
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Don’t consider if changes in your business have occurred and notify the insurer mid term.
Here is a hot tip from a person who’s worked in major PI claims, negotiated major PI contracts and worked as a lawyer for over 15 years dealing with professional liability and been a GC purchasing insurance:
Just don’t assume you are covered because you purchased a policy!
It’s a risk transfer based on words on a page. Based on disclosure under the insurance contract act and if you don’t carefully review those things and act accordingly…
Don’t assume you’ll be covered.
Of the tens of PI claims I see each month so many aren’t covered - and what’s worse is that each could be a BIG claim event.
So here’s my message, PI insurance is a contract and it’s a contract that renews annually and you need to work at it not just go through the motions.
Go to your Outlook calendar now, set aside a half day six weeks prior to your next renewal. Have a good read of your policy, get an hours advice from an insurance lawyer and make sure you are ready to properly engage with your broker for your next renewal.
After all, maybe speak to a few other brokers and see if what you’re doing at present is best practice!
This article is a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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