Institute of Certified Bookkeepers
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When to get your insurance company involved

  • Fellow in Practice
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  • 455 posts
  • # 53711

Does this make sense to you?
DO you now know when to tell the insurance company?

When does your Insurer get involved in a complaint against you?”

It is very important for you to notify your insurer/broker of any circumstance that might give rise to a Professional Indemnity claim. In our case (Insurance Made Easy) We will give you advice on the procedures, and in most cases we will ask you to make a short report on the particular incident and send it to us. We will then forward it to the insurer.

If it is only a potential claims circumstance that is notified, then the insurer will simply acknowledge the notification, and file it away. This is most important as it protects you in the future , should it progress to a claim in years to come even if you have left the bookkeeping industry and forgotten all about it.

If it escalates into a Professional Indemnity Claim then the insurer (in our case Chubb Insurance) will engage either their own legal team or use the services of external legal advisers who will give a legal opinion on whether or not the person or company lodging the complaint with you has reasonable grounds for making the complaint.

So it is important to advise the Broker/Insurer who will liaise with you on the very first engagement of any legal representation or advice for you.

The legal experts will determine whether or not the circumstances are covered by your policy. If they are ,they will then determine whether or not the matter should be defended or acknowledged and paid.

Whatever the decision by the Legal Advisers you will be consulted for your opinion as to what is the most economical way of settling the dispute. If the claim is acknowledged and either defended or paid you will be responsible for paying the excess on the policy which in the ICB preferred policy is generally $1000.00

The ICB preferred professional indemnity policy, through IME & Chubb covers legal and defence costs in addition to the sum insured that you have selected (so where you have a policy with cover of $250,000 these legal costs are paid in addition to any amount that may be paid out if the claim is proven against you. We also note that a payment of $250,000 on one claim may be made ,you are still insured against at least one other claim in each year)

In closing,if ANY circumstance presents itself that you think might lead to a professional indemnity claim down the track, please give us a call for advise Insurance Made Easy: 1800 641 260 contact Rowan, Helga or Sam.

Does this make sense to you?
Do you now know when to tell the insurance company? 

  • 5 posts
  • # 79460

I have removed this post as it soesnt make sense and looks more like spam than anything useful

Edited at 09 Feb 2012 06:39 AM GMT by Matthew Addison (MODERATOR)

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