It is essential to disclose all material information otherwise claims could be declined. Buyers must complete a proposal form, which becomes part of the policy contract. These forms are designed to capture all the relevant information but, if you feel an important part of your professional service has not been disclosed, speak to your insurer or broker. Whoever is completing the form should check with all senior executives that what is on the form is correct to their knowledge.
Consideration should also be given to retroactive cover. When you take out PI cover for the first time you may be able to buy retroactive cover to give protection for future claims that arise from professional services performed prior to the inception of your first policy. If organisations are established and have not bought cover before, they must consider existing exposures and whether they need retroactive cover back to when they started trading. There is also a claims disclosure clause that must be carefully observed. The company must disclose any potential claims, or circumstances that may give rise to a claim, to insurers within a specified timeframe. In some policies this is worded as ‘immediately’. In other policies the notification requirement is ‘as soon as is practicable’, which allows the policyholder a far higher degree of latitude.