Chris Frost Insurance Services Limited
Professional Indemnity Insurance

Frequently Asked Questions


Q         How do I get the Right Advice?

Ask a registered insurance broker/intermediary to help. As an independent expert they will be able to give you impartial and sound advice.

Q         How does the Insurance Broker earn their income?

They either receive a commission from the Insurer or are paid a fee by their client/policyholder for the services they provide.  To ensure complete independence, and therefore reliability and impartiality, negotiate a fee based appointment.  The difference between the gross and net premium is the amount of commission which can be rebated to you.

Q         How long does the insurance coverage remain in force?

Professional Indemnity insurance is normally purchased for a period of twelve months.  In the unfortunate event of a claim, provided it was not known to you prior to the attachment of cover, the claim will attach to the policy in the year the claim was first reported to the Insurer.  If the policy is allowed to lapse any future claim arising from past acts will not be covered.  It is essential to ensure policy coverage continues in future years ahead and the policy is renewed before the renewal date.

Q         Who deals with a potential claim?

The Insurer with the support from your insurance advisor.  The Insurer may decide to appoint an independent firm of advisors i.e. claims adjuster.

Q         Are we insured for the legal costs?

Subject to the Insurers written consent, Costs and Expenses which are incurred in the defence of a claim are paid for by the Insurer.

Q         Can the premium be paid by instalments?

Yes, normally spread over 10 or 12 months subject to a service charge.

Q         Are Insurance Brokers governed by a Statutory Authority?

Yes, since the beginning of January 2005 all Insurance Brokers/Intermediaries may only conduct business provided they have received their grant of permission from The Financial Services Authority.  This is a government regulatory body which supervises the Financial Services Market here in the UK.

Q         What is an “Excess”?

This is an amount which you are responsible to pay for each and every claim before your Insurers agree to settle a claim.

Q         How does the Limit of Indemnity operate?

The Limit of Indemnity is the amount that you select to insure.  The figure might apply to each and every claim or represents the total sum for all claims Insurers will pay in any one year.

Q         What is a Retro Active date?

This means the exclusion of any claim or circumstance in respect of any work undertaken prior to the time that cover is first bought.

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