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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
The HIP 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.
1.1.4 Arrange the PII cover with an insurer authorised for the purposes of the Financial Services and Markets Act 2000 and authorised with the Financial Services Authority.
Important Note
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: HIP provider and/or search agent) 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).
27 February 2007
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