For all those whose PII renewal date has just passed on 01 October, you can let out a sigh of relief as your PII cover should now be in hand. But before you get back to your day job and forget about PII completely, it is worth mentioning that PII is a year-round process and good preparation is key.
Here we will provide you with some advice and guidance on how to manage your PII effectively through the year whenever your renewal date falls.
Sharing information with clients
Solicitors do have obligations regarding the sharing of PII information. The Provision of Services Regulations 2009 are still applicable after Brexit and the specific clause of note is 8(n) which states solicitors must provide clients with the contact details for the insurer that provides the compulsory cover in compliance with SRA Minimum terms and; the territorial coverage of the insurance cover.
The requirement is satisfied so long as the information is either offered by the solicitor or is easily accessible at the office, via the website or within client documentation.
It is also worth noting that should a claim be made against the firm, it is incumbent upon you under the SRA Indemnity Indsurance Rules to provide the insurers name and contact details plus the policy number. This is all you should disclose however without further discussion with your insurer, as some policies have clauses restricting disclosure of policy details without the insurers consent.
Point(s) of contact
It is most helpful for one or more nominated individuals to be responsible for communication with the insurer. One may be sufficient for a small firm however larger firms may wish to have more. In any instance, only one person should be responsible for notifying the insurer regarding claims. The nominated point of contact will ensure that communication with the insurer is consistent, and that declarations, amendments and notifications are made correctly.
Claim Notifications
Take time to understand what the insurer expects in terms of notification of claims and circumstances. All policies are different, however one universal is the expectation that you will report a claim as soon as is reasonably practicable so the golden rule, regardless of the individual policy, is not to delay in making the notification.
It is essential to notify your insurer of material changes regarding your business such as change of address or nature of business.
Everyone at the firm should be aware of the importance of notifying issues as they arise and what they must do if communication from a client suggests that notification should be made. If these firm-wide communications are kept up to date periodically throughout the year it avoids complications rising from last minute notifications at the renewal time.
Importantly, solicitors owe a duty of disclosure to their insurer which runs through the whole course of the policy year. You must make a fair presentation of your firm’s risk, for example if your firm diversifies into a high-risk area of work, this is classed as a material circumstance which influences an insurers decision on whether or not to underwrite the risk.
Legal Ex Plus was established to provide professionals with tailored insurance products with a difference to suit specific organisational requirements. By drawing on our vast experience and applying our in depth knowledge of professional services, we are able to design innovative insurance programmes for each of our clients, many of whom have been with us since the early years.
If you need advice or assistance with any aspect of Solicitors Professional Indemnity Insurance, give us a call today on 0800 180 4203.