Step-by-Step Guide to Making a PI Insurance Claim as a Solicitor

Professional indemnity insurance is highly beneficial for legal practitioners as an essential part of the professional indemnity insurance claims process, breach of duty or mistakes, to take advantage of. Understanding how to claim under your professional indemnity insurance coverage and getting your claim process correct is important when you are facing a threat of reputational and financial damage, part of your legal and professional liability. This guide will assist solicitors through the various stages of making a professional indemnity insurance claim, what to expect, and how to act. 

The Key Steps in the Professional Indemnity Insurance Claim Process

Each step in the PI insurance claim process is important. Each step helps to ensure that you have a smooth process and that your interests are protected. Here’s a guide on how solicitors can claim PI insurance:

Step 1: Inform Your Insurer or Broker Without Delay

The most important step in the professional indemnity insurance claim process is to inform your insurer or broker immediately after you are first aware of a claim or circumstances. In this case, it is always better to keep your insurer aware and updated. Remember, delayed notification of a claim or circumstances could nullify your indemnity insurance for legal practitioners, so act swiftly and disclose the full details.

Step 2: Collect and Submit all Documentation

After you've notified your insurer, you will be required to submit a claim form and all your supporting documentation. This will include contracts, retainer agreements, correspondence, details of the claim, and evidence to support and verify your defence. Generally, the more information you submit, the easier the professional indemnity insurance claim process will be. Your insurer/broker will usually assist you in preparing and checking your submission to meet the insurer's requirements.

Step 3: Insurer's Initial Investigative Step

Once your claim is submitted, the insurer will determine whether your PI insurance policy corresponds with the incident or not. To make this determination, the insurer will assess the validity of the policy, the limit of the coverage, and any applicable exclusions. Common causes of denied claims involve late notice, non-covered events, and/or lapsed policies. It is important to consider the wording of the policy and your obligations at this stage in the professional indemnity insurance claim process.

Step 4: Investigation and Appointment of Legal Representation

The insurer will then conduct a thorough investigation of the claim, including the events leading to the original claim. Depending upon the complexity of the claim, the insurer may appoint a lawyer from their panel of lawyers or at your suggestion. The appointed lawyer will advocate for your interests and will work with you and the insurer to build your defence. Indemnity insurance for legal practitioners usually covers all costs. This includes obtaining legal representation and conducting a defence.

Step 5: Negotiation and Settlement

If liability is proven, the legal team appointed by the insurer will enter negotiations with the claimant in order to settle the claim with compensation that is fair and reasonable. This phase of the professional indemnity insurance claim process tends to be a lengthy period of negotiation and can often take weeks and months. Brokers and insurers provide an update at this time and may request further information if required. If a settlement has been agreed upon, the insurer will pay compensation and legal costs should you be liable to the limit of your policy and your excess.

Step 6: If Necessary, Litigation

If you and the claimant are not able to negotiate a settlement, the case may end up going to court. Your defence costs will be paid by your PI insurance, and your insurer will manage the litigation process. The solicitor appointed for you will act as your representative, and the insurer will continue to assist you in that litigation.

Step 7: Resolution and Payment

Once your claim is either resolved by way of a settlement or a court decision, your insurer will pay for the covered costs. You may need to pay an excess under your policy; however, your indemnity insurance for legal practitioners will cover the majority of the compensation and legal costs. You should keep a record of how it was resolved, as you might want this information in the future.

Step 8: Claim Process Review

After your claim against your professional indemnity insurance has been settled (i.e., closed) then review how the entire process was conducted with your insurer and broker and ascertain if there were any issues that you can learn from and if adjustments are needed to your risk management or to your PI insurance policy/coverage limits as a result of the claim experience. 

Take Action: Protect Your Legal Practice Today

Understanding how to claim PI insurance and going through the professional indemnity insurance claim process is a must for all solicitors. If you haven't had your indemnity insurance for legal practitioners reviewed yet, then you must do so urgently. Contact Legal Ex Plus today to get the most appropriate, current, and best-value PI insurance policy.