This is the amount that you will be required to pay in the event of a successful claim being made against you. This normally applies to each and every claim.
My policy says that cover is on a ‘claims made basis’ – what does this mean?
Professional Indemnity Insurance is offered on a ‘claims made basis’. Cover is provided for claims or circumstances discovered and notified to the Insurer during the period of insurance. It is essential that you maintain continuous insurance, once the policy expires, so does your cover.Your policy is flexible and the Limit of Indemnity can normally be increased subject to receipt of a satisfactory no claims declaration.
Yes, policies will cover you for mistakes made by PAYE employees.
The policy can be cancelled on receipt of your written instructions. Should you make any request for the cancellation of a policy in writing and any relevant certificates or schedules should be returned to us or the Insurer concerned. In the event of cancellation the terms of your policy may allow insurers to retain the premium in full or to charge short period premiums. It is essential that you remember that if you do cancel your policy the ‘claims made’ nature of the cover only covers claims or circumstances that are discovered and notified during the period of insurance. Therefore, if someone makes a claim against you for work you did for them when the policy was in force, if the policy is cancelled, you will no longer be able to claim on the cancelled policy as all cover has ceased.