professional indemnity insurance

monkey8

I am a health care professional and have been paying professional indemnity insurance for the last 15 years from the same insurer. I have just realised that when i retire if a claim is made a year afterwards, for an event that occured while I was paying insurance I would not be covered as I am not paying insurance at the time of the claim.
This means that i would have to continue paying PII after I retire to remain covered.
Is this a regular practice with insurance companies?
IS it legal?

oldyouth

You need to talk to your current PI insurers and discuss 'run off' cover. This effectively means that if a claim is notified in subsequent years, the cover will be in place.

The logic behind this is that you (or anyone imparting advice) may have caused a claimable incident that will only come to light in the future. You give the advice today, but the consequences will only materialise down the road.

Just talking in general here.

pauld

To naswer your question, yes it is legal. Professional Indemnity Insurance is most often placed on a claim made basis, this is the case in most countries around the wordld.

Claims made = the date the claim is notified / made irrespective of the date of the incident given rise to the claim is the date to determine the applicable underwriting year of the policy. If no claim is notified to a particular underwriting year of a policy by the expiry date of that policy then no claims can attach to that underwriting year following the expiry date.

As someone suggested, run off cover should be available in the event that you cease working. I would suggest you discuss with your broker and perhaps colleagues and retired colleagues in your area of health. Different areas have significantly different Insurance arrangements

oldyouth

Can anyone else hear an echo, or is it just me??