Frequently Asked Questions

The following frequently asked questions and answers are to help you when applying for a quotation. 
Naturally, if you have a question which isn’t covered here, please feel free to contact us on 0800 454 632.

GeneralProfessional Indemnity
General

QI have no idea what amount of turnover or wage roll I’ll be achieving next year, what do I do?
A
We need you to give us an estimate of the sort of income you are expecting to achieve at this stage and your forecast should be as accurate as possible. We will send you a declaration at your renewal asking you to tell us what you have actually achieved, and your insurance will then be adjusted accordingly


QHow quickly can you prepare a quotation?
AWe can turn around a quotation within two working days. In reality, we can normally provide a quotation sooner than this.


Q Why can’t you give quotations over the phone?
A
We are often asked to give ‘rough quotes’ over the phone. As each quotation is individually tailored to your particular circumstances, we are NOT able to give you accurate premiums over the phone. If insisted upon, we can ONLY provide minimum premiums as a very vague guideline. However, we would rather not mislead you by advising minimum premiums when in reality, once your completed application is received your quotation is calculated at a higher amount.  So it’s always best to obtain an accurate written quotation.


QI am preparing a business plan for the bank manager and only need a rough quotation at the moment?
A
We can only provide you with minimum premiums over the phone (see above), if you are preparing a business plan it would be better to obtain a written quotation from us.


QOkay, I’ve had the quotation, I’m happy with the premium and terms, and I would like cover. What do I do now?
A
The surest way to instruct us to hold cover is to send us a fax. We will then instruct the Insurers on your behalf. If you don’t have time to fax us, then call us first, and follow this up with a fax when you do have a free moment. This is the best way and safeguards both parties.


QWhat payment options are there?
A
It is usually possible to pay by direct debit over 12 interest-free monthly instalments. No deposit is required. Occasionally it may be necessary to use an insurer who does not offer interest-free instalments and a small interest charge may apply. We would advise you beforehand if this were the case. You can, of course, pay in full by cheque.


QI need cover for everything. Can you provide this?
A
Whilst an insurance broker’s eyes may light up when you say this, in reality we cannot give you cover for EVERY eventuality. The best we can do is offer you what we CAN cover. Criminal activities, for instance, are not insurable.


QI need cover now! Can you hold cover while you are preparing the quotation?
AUnfortunately NOT. We cannot hold cover for an unknown risk. Your details are sent to us, we prepare a quotation with terms, conditions and exclusions that you must be fully aware of, and accept before cover is confirmed. Not only that, our final quotation may also be unacceptable to you. 

Professional Indemnity

QWhy do you ask for a copy of my CV?
A
Professional Indemnity cover protects you in the event that a client of yours alleges professional negligence, errors or omissions. We ask for your CV to ensure that you have adequate experience in your chosen professional field.


QWhy do you want to know my turnover?
A
We rate professional indemnity policies on your turnover because it gives us the best idea of how active you are likely to be in the industry in which you are involved. From a risk-measurement point of view, if you are earning £100,000 from one client we can see that you are professionally more at risk, than if you were working for 1000 clients at £100 each.


Q I have a professional indemnity quotation from you. What does the condition ‘retroactive date inception’ mean?
A
If this condition applies to your quotation, any claims relating to work done prior to the start date of the policy will not be covered. For instance, if your professional indemnity insurance policy starts on the 1st May 2008 and on the 2nd May 2008 you receive notification of a claim for negligence from a client for work carried out six months prior, the claim will NOT be entertained under the current policy.


QWhat does ‘claims made basis’ mean under the professional indemnity?
A
This means that you claim under the policy in force at the time you are advised of a third party’s intent to claim. Most other types of insurance stipulate that you claim under the policy in place at the time the incident occurred (i.e. ‘claims occurred basis’). This is a very good reason for maintaining continuous professional indemnity cover even if you cease trading or retire, for at least 12 years if you fulfil contracts in the building industry.


QHow do I decide on the level of professional indemnity cover that I need?
A
This decision has to be left to you. The only way we can guide you here is by providing quotations for all the different levels that we offer. Try to visualise the worst possible scenario of a financial loss that a client could suffer if you are negligent. Then try and make a balanced decision from there. Naturally, if you undertake work that stipulates a minimum level of cover in the contract, you should ensure that your cover is adequate. As professionals, we have to advise you to take as much cover as you can afford.


QI only need professional indemnity cover for 3 months, as that is the length of my contract. Can you do this?
A 
Short period professional indemnity policies are NOT available. Bear in mind that even if the contract is for 3 months, your client can still sue you 12 years or more after you fulfilled the contract if they discover that you have been negligent, made an error or there has been an omission. And remember (see ‘claims made basis’ above) for professional indemnity policies, cover has to be in force at the time that the claim is made not just when you are carrying out the work.

For further advice about protecting your business please call us.

Freephone:
0800 454 632