IFA 2010 Conference, with Kristene Crook (Aon). Mythbusters approach to understanding Professional Indemnity cover issues for advisers

1. PI Insurance …. Myth or Reality?

3. MYTH 1 The client’s lawyer says that the PI cover will make good any client loss. The adviser is fine then?

5. MYTH 2 Only defence costs are covered by your PI policy.

7. MYTH 3 Your best to deal with the unhappy client a.s.a.p. and don’t involve the PI insurer.

9. MYTH 4 It’s only a claim when they sue or lodge a formal complaint with a tribunal or professional body.

11. MYTH 5 If you don’t do investment work there’s no need for PI cover.

13. MYTH 6 A members scheme for PI cover with a cap has no effect on an individual member.

15. MYTH 7 If all you do is investment advice and your insurer knows that is all you do, you are covered for it.

17. MYTH 8 You are covered for anything if it is not you, but your staff, who are negligent.

19. MYTH 9 You can actually get covered for investment advice…..

21. MYTH 10 Being well qualified and having good business practice makes you a lower PI risk, and gets you a better price for cover.

23. MYTH 11 There are no issues if you retire. Your previous PI policies cover the time when you were giving advice.

25. MYTH 12 The average claim cost is so low that it is best to self insure.