Professional Indemnity Insurance provides cover for you when you have been negligent in your work as a bookkeeper and your client sustains a financial loss as a result. It will also provide cover for legal expense in defence of actions against you where the Insurer, Chubb Insurance, and/or legal representatives deem no negligence has occurred.
It is important to understand that Professional Indemnity Insurance is a claims made Insurance cover which means that you are covered for claims made against you which are reported, (to the Insurer), during the policy period within which you became aware of the circumstances. This means you need to report to Insurance Made Easy any circumstances you become aware of which may or could result in a claim so that we can liaise with Chubb Insurance to fulfil your policy obligations.
The circumstances of every report of a claim and/or claim varies so it is important that once you become aware of any issue or complaint against you or your company you contact Insurance Made Easy for advice. We will obtain the details of the circumstances which you believe could result in a claim against you and then advise you on how to manage the claim.
If a claim has not been pursued but you are aware of an issue we will obtain the details and make a ‘Report” on your behalf to Chubb Insurance for their records. For the purposes of your policy, a ‘Report’ is not considered a claim until such time your client pursues you for compensation. If your client wishes to pursue a claim against you for compensation your client is required to provide you with the following:
- A formal Letter of Demand outlining their claim against you including details of your alleged negligence and the amount of compensation sought.
- Documents to substantiate the compensation they are pursuing.
You should then pass on to our office any correspondence you receive from your client so that we may lodge your claim with the Insurer and liaise both with Chubb Insurance and you to manage the claim. Chubb Insurance will advise if and when legal representation is required and if so, appoint solicitors to act on your behalf. Throughout this process Insurance Made Easy will assist you and continue to monitor the claim.
It is important that you never admit liability or make any agreement to settlement of a matter without first referring the details to our office so that we may obtain advice from your Insurer, Chubb Insurance.
Contact Insurance Made Easy on 1800 641 260. For further information: Insurance Made Easy