Professional Liability Call FI on 03333 211403

Background to Pii: Current Insurance Law

Similar to employer's liability insurance, which is compulsory in England and Wales and is intended to ensure that those injured at work can recover damages, and motorist's insurance, changes in the law requires some  professions to have adequate cover is seen as an exercise to protect both the advisor / professional / their staff etc. against the financial consequences of his own mistakes, and that he / she is is financially able to compensate the client / members of the public even though they will not be parties to the contract of insurance with FreelanceInsure.

Where things can come unstuck and where English law of insurance is not adequate is where the professional has the correct policy but fails to disclose facts to the insured, material to the risk being insured.

All UK  Insurers, including FreelanceInsure, (see policy doc) are entitled to include terms which warrants that every information contained on a proposal form is accurate; if there is any inaccuracy, the policy is deemed to have been void.  The non-disclosure need have no connection with any loss suffered by the insured for which he /she  is seeking an indemnity.'

An example of such terms are as follows:

"Cover is subject to confirmation that the Directors, after enquiry, are NOT aware of or suspect or have grounds for suspecting any circumstances which might give rise to a claim against the business or any present or former Directors. Confirmation that NO claim such as would be covered by the proposed insurance has ever been made against the company or any of its Directors whilst in this or any other company. Confirmation that NO insurer has ever declined a proposal or renewal for this business or any Director."

Current Insurance law, has been based on a the Marine Insurance Act 1906, tends to see consumer fiscal contacts are few in number and limited in their scope, however this discounts the fact that it is common for private individuals (not professional, mercantile and land-owning people included in 1906!) to have savings, pensions etc and enter into insurance contracts of all kinds,  as informed consumers.

2012 - 2013: Changes in insurance law have gone some way to redress the balance that was firmly tipped in favour of the insurer. Insurers rights to deny cover have been reduced. Other changes that reflect professional liability insurance as a separate entity, has seem a tendency among insurers including FreelanceInsure and Royal Sun Alliance to enlarge the scope of the potential liabilities against which the freelancer is covered, although this inevitably varies both from profession to profession.

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