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.