Frequently asked questions
You are certain to have questions before deciding where to place your Professional Indemnity insurance.
This additional benefit limits the total excess the firm will pay for the insurance period to three (3) times the selected ‘per claim’ excess.
For example, if a firm has an excess of £1,000, the firm would only pay £3,000 over the course of any one year. Without an aggregate excess, a firm would have a potential liability of £1,000 for each and every claim and circumstance reported during the course of the policy period.
As the firm is able to limit its exposure in this way, we charge an additional premium for this coverage.
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IPT is chargeable on all professional indemnity insurance premiums. It is currently charged at 5% of the total premium and is in addition to the premium charged by the insurance company.
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The firm should use the latest annual billings for the gross fees question. Annual billings normally run alongside the firm’s financial year. The areas of practice should then match this number.
If the firm does not have a full year’s annual accounts to use or if the firm is just starting up, then a best estimate of anticipated fee income and areas of practice should be provided.
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A non-solicitor fee earner is a person in the solicitor's firm who generates fee income but is not a solicitor. Examples could be a conveyancing manager or a trainee solicitor, a paralegal or a legal executive. A member of staff is someone who works at the firm but does not generate fees. An example could be a receptionist or an office manager.
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A foreign office is any office located outside of England and Wales. The Channel Islands are not covered.
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Yes, payment of defence costs may affect the firm’s premium.
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Cover begins on the inception date as set out on the schedule to the policy and once all conditions have been satisfied.
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New practices (i.e. those not established as a result of a merger or succession) will be insured from the date of establishment until the 30th September on a pro-rata basis. Those firms that start to practice after 1st June will be insured until the 30th September of the following year.
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A firm can choose to pay in monthly instalments by direct debit through the arrangement Zurich Professional & Financial Lines has with Zurich Bank International Ltd. If they choose this option, we will require a running account credit agreement (RACA) to be completed and approved by Zurich Bank International Ltd. If they wish to pay in full, they may do so by: cheque, BACS or wire transfer (CHAPS)
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Zurich Professional & Financial Lines will consider all requests for increased limits. We will need to know the reason for the increase in limits, details of any claims or circumstances that have not been reported and of any significant changes to your practice.
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