This is a summary of responses and follow-up from the enquiry I posted
on the list some months ago, about professional indemnity insurance.
1. Everyone agrees it is expensive.
2. All but one of the LIS-CILIP replies pointed to the same insurer,
once upon a time known as Tolson Messenger; subsequently known as Icon
Insurance, said to be the cheapest.
Icon were good in that they had an online presence and responded
quickest to my enquiry. But in the end I found it pays off to go to a
broker who will obtain quotes from several insurance companies. The
cheapest, for me, was called Saturn Professional Risks.
3. One of the key decisions is what liability limit to choose. The
quotes I received ranged from a limit of 100 thousand pounds to two
million. (And the corresponding annual premiums went from 400 pounds to
2000 pounds, not necessarily in that order respectively.)
I asked one of the brokers for some guidance. She suggested that a 250k
limit is a common minimum, but a guideline could be 2.5 or 3 times your
annual fee income.
Looking at the S-CAT terms (which apply commonly in the public sector) I
note that "The aggregate liability of the CONTRACTOR under Clause A10.1
shall in no event exceed two million pounds (£2,000,000)" - I take this
limit to include public liability as well as professional indemnity and
any other claim they might want to throw at you under the contract. The
next clause, more reassuringly, says, "The aggregate liability under the
Assignment Contract of either party for all Defaults (other than a
Default governed by Clause A9.2.1 or A9.2.2) and under Clause A10.12
shall in no event exceed the greater of fifty thousand pounds (£50,000)
or one hundred and fifty percent (150%) of the amount paid and payable
by the CUSTOMER for the Services."
4. I found the whole experience pretty stressful. Just deciphering the
meaning out of the various legal documents is enough to lay you low,
never mind coughing up the premium - and all under pressure from a
client who is demanding that a policy be in force, before a contract can
be signed.
5. And it doesn't end there. Professional indemnity risks are usually
covered on a "claims made" basis. In other words, if I commit an act of
negligence now, and the client presents a claim in 2008, the insurance
company will not pay up unless I am still paying the annual premium in
2008.
6. And all the time, one wonders what size of claim any of us might
ever have to face. How would one of my clients estimate the financial
loss arising from use of a thesaurus that does not quite measure up to
ISO 2788???
Best of luck to all those following my footsteps, or already ahead of
me!
Stella
*****************************************************
Stella Dextre Clarke
Information Consultant
Luke House, West Hendred, Wantage, Oxon, OX12 8RR, UK
Tel: 01235-833-298
Fax: 01235-863-298
[log in to unmask]
*****************************************************
|