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If I am an Agent and I only have one Agreement with one Insurer and I can provide proof that I am covered by my Insurer for Professional Indemnity; do I still need a Professional Indemnity Insurance?

posted Jan 7, 2013, 12:36 PM by ICB Administrator
If you have one Agreement with one Insurer and they are extending their PI cover to include your Company then no you do not need a separate PI cover. However we do not recommend this practice as Professional Indemnity provides indemnity for the insurer against loss/circumstances incurred only as a result of their negligent act, negligent error or negligent omission in carrying out the policyholders business. If that negligent act is one done or caused by the Intermediary and the Insurance Company wishes to recover from the intermediary monies paid out in the event of a claim, they would have to sue the intermediary as they would not be able to recover on the PI cover as it is one cover shared by both.