Professional Indemnity Insurance Requirements (Annex A)
1. Professional Indemnity Insurance Requirements (PII)
This Annex sets out the Professional Indemnity Insurance Requirements for Registered Firms under The Search Code
1.1 Each Registered Firm must:
1.1.1 Carry Professional Indemnity Insurance of £2 million for any one claim or such other higher limit as may be deemed necessary from time to time. If conditions in the insurance market are such that professional indemnity insurance is no longer available on an "any one claim" basis then this requirement will be amended to read £2 million in the aggregate subject to one full automatic reinstatement. If such insurance is exhausted the Registered Firm will be required to effect further insurance for an amount of £2 million in the aggregate subject to one automatic reinstatement.
1.1.2 Ensure that any new or renewed cover/insurer details are notified to the PCCB as soon as possible. This will allow continuous registration where a Registered Firm's PI insurance cover expires during the registration period.
1.1.3 Send an annual report to PCCB detailing the type and number of claims on the PII policy and specialist search insurance policy (see 3.1 below).
1.1.4 Arrange the PII cover and specialist search insurance with an insurer authorised for the purposes of the Financial Services and Markets Act 2000 and authorised with the FCA/PRA.
Professional Indemnity Insurance Checklist
At registration, renewal or inspection, PCCB will need evidence from firms to show:
(a) that the insurance is current
(b) that all monthly premiums have been paid to date (evidence could be a confirmation e-mail from the insurer or broker or copies of bank statements showing insurance premium payments)
(c) that the insurance specifically covers the provision of search services as appropriate
(d) that the cover is at least £2 million
(e) that the cover is specifically for any one claim
(f) that the insurer is aware of the firm’s full name and any trading names under which it provides searches
(g) that the insurer is aware of the firm’s address, as registered with the Board
(h) the name and full address of the firm’s insurer/broker
(i) the reference number for the policy
Please note that the PI insurance evidence submitted at first registration or renewal must clearly show that the business activity for which registration is applied (ie: search compiler and/or retailer) has been declared. Please also note that the PI insurance evidence submitted must detail the business entity name (eg: sole trader name, Limited Company, Partnership, etc.) and any applicable trading names – just a trading name is insufficient. Alternatively, PCCB will accept separate confirmation from the PI insurer if this information does not appear on the original policy document. PCCB also requires that the address on the insurance evidence cross references that declared on the registration form (whether a business or registered address).
2. Run-off Insurance Requirements
2.1 Each Registered Firm must provide an undertaking that should the Firm cease to trade for any reason it will, prior to that event, execute run-off insurance cover for its past search products and services. The undertaking should be accompanied by evidence (for example, provision in the wording of the Firm’s PI policy, or confirmation from the Firm’s PI insurer or broker) that run-off cover would be available to the Firm should it cease to trade.
3. Specialist Search Insurance Requirements
3.1 Each Registered Firm must either
• have in the Firm's PI policy cover for errors and omissions in local authority data and records, and run-off cover for a minimum of six years; or
• arrange separate insurance cover provided on a per search basis (specialist search insurance) for the Firm's personal search products which report on information held by local authorities, and as a minimum that insurance must provide cover of £2 million (any one claim) for errors and omissions in local authority data and records.