CMCOB 7.4 Professional indemnity insurance: personal injury claims management
Application
1This section applies only to firms who carry on advice, investigation or representation in relation to a personal injury claim.
Requirement to hold
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)
a Zone A country; or
- (2)
the Channel Islands, Gibraltar, Bermuda or the Isle of Man.
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:
1The minimum limit of indemnity per year in the professional indemnity insurance contract must be no lower than:
- (1)
£250,000 for a single claim against the firm;
- (2)
£500,000 in the aggregate.
- (1)
1Where the professional indemnity insurance contract includes an excess, the excess must not be greater than £10,000 per claim.
- (2)
The professional indemnity insurance contract must contain cover in respect of legal defence costs.
- (3)
The professional indemnity insurance contract must provide for continuous cover for all claims: