Insurance Claims in respect to Professional Indemnity

There has been a recent increase of claims in respect to professional indemnity insurance for various professions particularly solicitors PI and independent financial advisors. In addition the banks who have miss sold an awful lot of policies via their insurance services sections where they have been suggesting compliance and offering them a personal injury and redundancy plans etc which were completely wrong for many of those clients.

It probably hasn't gone past anybody's notice of recent weeks where massive amounts of both television and radio advertising is encouraging people to make claims if they have taken out one of these plans. This will only cumulate into claims being made against professional indemnity insurance policies.

The fact remains that these insurance plans should never have been sold in the way that they were and that both banks and some (but very few) brokers targeted people and coerced them into purchasing policies that either didn't fit the circumstance or were in fact totally wrong. When it comes to treating customers fairly this has not been adhered to in the promotion of these plans.

It is therefore reasonable to assume that insurers who have covered various businesses that sold these plans with professional indemnity, can expect some big claims to be made.

There is also a consideration here that many of the brokers or organizations that sold these plans and had PI insurance in place, may very well have excesses to pay themselves.

The moral of the story here is that anyone selling insurance services, should not necessarily be put under pressure to sell a particular product and clear definitions and explanations should always be given to a client before they purchase such a policy.