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Why you shouldn’t let your PI Cover lapse

By Selina Zwolsman posted 27 days ago

  

Continuity of cover is of utmost importance when it comes to professional indemnity insurance.

 

If you become aware of an issue that may give rise to a claim ('known circumstance'), or if you receive a demand or notification of a potential claim, and you do not have a current policy at that time, the known circumstance or demand/claim will not be covered under a new policy regardless of the retroactive date.

 

All prior claims or known circumstances are automatically excluded under any new policy. Prior claims or known circumstances may also be excluded from a renewal policy when the potential risk has not been communicated with the insurance provider.

 

However, the cover we've secured for KBDi Members contains a continuity extension: this allows coverage for claims not notified within the correct policy period, providing the member is continuously insured by the insurer. (Of course, fraudulent claims are excluded from this clause.)

 

In summary, it's imperative that you maintain the continuity of your cover and keep your policy in check.

 

And it's essential to communicate with your insurance provider if and when a claim, or potential claim, or any circumstance or matters arise that you may reasonably expect may give rise to a claim in the future.

 

If you have a question about your existing policy or cover, please don't hesitate to contact us. We'll connect you directly with our Insurance Partner, CMIB, to ensure you get the best information for your current circumstances.

 

Not insured yet? Learn more about our tailored PI and PL Insurance here.

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