We attended a very detailed and well-presented seminar from two Partners at Kennedys LLP, Jeremy Riley and Claire Bushen. They noted the important differences between the notification of circumstances, and the notification of claims. With Professional Indemnity claims, the time difference between the notification and the application to claim can literally be years. Depending on policy wordings and conditions, if timescales are breached in relation to reporting a claim, or where you believe there is the potential for a loss to occur, then the consequence may result in a claim being declined via insurers without prejudice. Both Jeremy and Claire discussed various cases where a sequence of events would determine who is legally liable, which insurer or re-insurer is responsible for the loss, and whether the loss is covered under the original notification. It became quickly apparent that not every case is ‘black and white’ at first glance. It is imperative that policy wordings are read and fully understood, in order to prevent any loss being repudiated. The moral of the story - if in doubt, call your insurer and let them make the decision – don’t forget to ‘cover your own back’ and ask if insurers need any further information.
The seminar lasted approximately an hour, and was much more in-depth than the above summary. If you have any questions, or would like to make contact with either Partners at Kennedys, just let us know!
Specialist Claims Recruitment Consultant