Professional Indemnity Insurance, Directors and Officers Insurance and Medical Malpractice Insurance are nearly unique in operating on a “claims made” basis. This provides cover for claims made (and reported to the insurer) during the current live policy period of insurance only. In other words, you cannot make a claim against a Professional Indemnity policy which has expired. If the policy stops, so does the cover.

In contrast, other liability covers such as Employers Liability Insurance provide indemnity for ‘losses occurring’ during the policy period; so, you are able submit a claim against an expired policy.

Since Professional Indemnity policies are underwritten on a “Claims Made” basis you should ensure that you are familiar with the following concepts and keep them in mind:

• The retroactive (back-dating) cover on your Professional Indemnity insurance policy
• Ensuring a fair presentation is made to insurers advising them of contracts / activities which was previously carried out but no longer carried out
• The requirement of “run off” cover
• Changing and maintaining the level of your Professional Indemnity level
• The importance of notifying a Professional Indemnity incident as soon as possible