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Jenny, Solicitor
Category: Law
Satisfied Customers: 6428
Experience:  Qualified Solicitor specialising in Employment Law and general legal matters. Please start your question For Jenny Only
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Sequence of events as follows: Started my professional Indemnity

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Sequence of events as follows:
Started my professional Indemnity Insurance
Missed payments
Broker advised the policy would be cancelled
Got new insurance
Policy cancelled
Client notified old insurer of potential claim
I notified new insurer of potential claim
Received invoice from broker for full amount of policy
Paid invoice
Broker stated they would not cover me retrospectively for the period of cover from taking out the policy to them cancelling the policy because of the potential claim.
The policy has been fully paid up and I have heard nothing from the broker. I advised them that this was legally their problem not mine.
The reason I am asking is that I need continuity of cover for my professional body and I want to pursue the client for fees. Can I assume that because I have paid the full outstanding balance requested by the broker and they have not questioned it that not only the cover was in place from the start of the policy but it will be in place until the policy ends?
Hello my name is ***** ***** I am happy to help you today. So was did the claim arise from an incident that occured in the period that you had cover with the old insurer. Other than writing to the old insurer have you taken any other action?
Customer: replied 2 years ago.

The incident happened during the new cover however when taking out the new policy it asked if this covered old work for which I need to be insured and of course the answer is yes.

I am an Architect and need to stay on cover.

Not taken any action other than paying an outstanding invoice.

Ok so you took out this insurance on the basis you had been told that you were covered for work prior to the commencement date?
Customer: replied 2 years ago.

I took on the new policy on the basis that my cover was cancelled from the date the new policy started because I had not realised I had so big arrears and the old company would not give me monthly payments because of this.

I have since paid in full the old policy, which should be live, the broker has not made any comment about the payment in two weeks.

In theory at the time of the claim I should have two policies. However the old company have said, after I paid them in full, that the policy was cancelled from the date of inception presumably because I had not given them any money.

At this time the old policy is paid in full and the broker has not made comment about the payment to either refund it because it was cancelled at the date of inception or to confirm that the policy is live. I do not want to ask them directly because at the moment there is a huge grey area which I can protect my professional status with.

If nothing happens then I will not have to prove I have cover however the clients claim is to prevent me from going after fees. I am only stuck because of my professional standards and the insurance cover. They potentially will not move this forward unless I do.

I'm a bit confused what you are asking here.
You seem to be asking if your new cover covers an event prior to the insurance being taken out but it is not entirely clear and you have not clarified whether you were told it would cover such events.
Please can you explain what it is you would like to know?
Customer: replied 2 years ago.

I am asking, given that my broker has not responded to my payment, if my policy is live given that it is paid in full. And also that the policy started at the date of inception given that I have paid the invoice that the broker issued.

Understood. Have you been sent the terms of insurance by the broker and or a cover note from the date that the payment was made?
Customer: replied 2 years ago.

I have the policy documents from the date of inception. So presumably with the policy documents and the receipt I am covered regardless of any other emails unless the broker writes and returns the money. Even then he will be required to give a just reason. Yes No. How long will he have from the date of payment to make that argument. The daft thing is there is unlikely to ever be a claim because my new policy is dealing with the claim

Hi in my view you are covered unless the terms of the policy state otherwise.
If they state you are not covered and refuse to pay out (in the unlikely event of a claim), then you will need to follow their internal complaints procedures.
If this does not result in resolution of the situation your next step is to put your case to the Financial Services Ombudsman, which deals with Insurance Matters to make a determination as to whether the insurer has made the correct decision. If it is clear that the cover should be in place you can also make a claim in breach of contract to recover your losses.
If you have any further questions please do ask. If I have answered your question I would be grateful if you would take the time to rate my answer. Thank you and all the best.
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