Professional Indemnity Insurance for Claims Management Companies (CMC's)

All CMC’s (Claims Management Companies) will be dealing with several variations of claims such as accident at work, road traffic accidents, slip, trip or fall claims, faulty products, industrial disease, medical negligence and others. Unfortunately like any other organisations and companies, a CMC (Claims Management Company) can themselves make mistakes, errors and/or admissions.

As of the 1st April 2019 many CMC’s (Claims Management Companies) will be regulated by the FCA, (Financial Conduct Authority) and will be required to hold Professional Indemnity Insurance (PII) currently set at £250,000 any one claim and/or £500,000 cover in the aggregate. Bigger companies may very well need to have higher levels of Indemnity cover in place.

Without PII (Professional Indemnity Insurance), companies expose themselves and run the risk of being sued without any financial backing to cover costs for legal fees and claims that may be awarded against them. A serious claims could stop a company from trading.

Covering past work | Other insurances for CMC's

CMC`s (Claims Management Companies) should be aware that any claims which relate to past work or incidents that took place before cover was taken out, may not be protected.

Some policies will include a retroactive date, this means that a policy can be back dated to cover any past work that you have done. If in doubt you should talk to us or a Professional Indemnity broker to advise you on whether past work cover is required.

Getting onto the types of covers that a CMC`s (Claims Management Company) should have in place, we would recommend the following as being highly essential in this new digital world. Naturally Professional Indemnity Insurance, Directors and Officers Insurance, Cyber Insurance and the standard Office Insurances of course which will include Public and Employers Liability Insurance and very often Legal Protection.

Whether you’re a start-up or an established Claims Management Company you need to protect yourself against possible professional neglect claims being made against you or your firm.
Your arguments could well be that you have been trading for years as a CMC and never have had a claim made against you, so why would you need to arrange (PII) professional indemnity insurance from Professional Insurance Agents Ltd.
Now days unfortunately companies and individuals are much more likely to make a claim against you or your business for the services you have been offering them if they think you have made an error or omission in the work you provided for them. With easy access to small courts and no win no fee lawyers/solicitors this leaves you and your firm very exposed with no financial backing for legal fees and damages awarded if you don’t have a professional indemnity insurance policy (PII) in place.
Remember the (PII) policy that you arrange will cover for both your legal costs and any proved damage cost that your claimant may get awarded.
Strangely enough most insurer will tell you that the highest cost they occur defending a professional indemnity claim is the legal costs and from you point of view it could very well be that you are totally innocent of any errors, omission or neglect, however, you still need to appoint an independent solicitor to defend these allegations, and without a professional indemnity policy in place you would have to pay these legal costs yourself and should you lose also have to find the lump sum damages that may have been against you.
Just one big claim could bankrupt your Claims Management business without PII cover in place.
To sleep easy at night and protect the business you have worked so hard to build and possibly your personal assets a professional indemnity policy is worth every penny.

If you need any help with the completion of your application or advice on obtaining PI Insurance for CMC's, please call telephone number +44 (0) 1323 648000 or e-mail us on info@professionalinsuranceagents.co.uk.

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Why not request our FREE Insurance Report on your company which will explain all the covers you would need to protect your business….Tel 01323 648000.

PIA (Professional Insurance Agents Ltd) specialise in PII (Professional Indemnity Insurance) with a 5 star rating and can advise you on the best policies to cover you and at very competitive rates.

Download our proposal form and send it to us for your CMC (Claims Managements Company) quotes.

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