Content Options

View Options

Status: You are viewing the version of the handbook as on 2019-09-14.

CMCOB 7.4 Professional indemnity insurance: personal injury claims management

Application

CMCOB 7.4.1R

Requirement to hold

CMCOB 7.4.2R

1A firm must take out and maintain at all times a professional indemnity insurance contract that provides for a level of cover at least equal to the requirements in this section from an insurer which is authorised to enter into professional indemnity insurance contracts in:

  1. (1)

    a Zone A country; or

  2. (2)

    the Channel Islands, Gibraltar, Bermuda or the Isle of Man.

CMCOB 7.4.3R

1The professional indemnity insurance contract must make provision for cover in respect of any claim for loss or damage, for which the firm may be liable as a result of a negligent act, error or omission by:

  1. (1)

    the firm; or

  2. (2)

    any person acting on behalf of the firm including employees, or its other agents.

CMCOB 7.4.4R

1The minimum limit of indemnity per year in the professional indemnity insurance contract must be no lower than:

  1. (1)

    £250,000 for a single claim against the firm;

  2. (2)

    £500,000 in the aggregate.

CMCOB 7.4.5R
  1. (1)

    1Where the professional indemnity insurance contract includes an excess, the excess must not be greater than £10,000 per claim.

  2. (2)

    The professional indemnity insurance contract must contain cover in respect of legal defence costs.

  3. (3)

    The professional indemnity insurance contract must provide for continuous cover for all claims:

    1. (a)

      first made against the firm during the period of insurance; or

    2. (b)

      made against the firm during or after the period of insurance and arising from claims first notified to the insurer during the period of insurance.