Professional Indemnity Insurance: Why early notification matters

What types of issues should you notify your insurer about?

Professional Indemnity Insurance can provide protection against certain claims arising from your professional services, subject to the terms and conditions of your policy.

Depending on the nature of your work, potential issues could include:

• Professional errors or omissions: Allegations that a mistake, oversight or failure in your work has caused another party a loss.
• Client complaints: Expressions of dissatisfaction that could develop into a formal claim.
• Copyright infringement: Allegations that your work has used someone else’s material without the necessary permission.
• Defamation: Claims relating to something you have said, written or published.
• Breach of contract: Disputes about whether agreed services or contractual obligations have been met.

You don’t need to wait until a formal claim has been made. If a complaint or incident could potentially lead to a claim, it’s important to check your policy requirements and notify your insurer promptly.

Why is early notification important?

It can be tempting to try to resolve an issue yourself, particularly if you believe it’s a simple misunderstanding that can be put right quickly. However, delaying notification could put your insurance protection at risk.

Notifying your insurer early gives them the opportunity to assess the circumstances, provide guidance and help manage the situation appropriately. It also helps ensure that any relevant notification requirements under your policy are addressed.

If notification is delayed, your cover could be affected, depending on the policy terms and circumstances. In some cases, this could result in a claim not being covered.

Our advice is simple: don’t wait for a situation to escalate before seeking guidance.

What should you do if an incident occurs?

If you become aware of a complaint, allegation or potential claim, there are a few important steps to take.

1. 1. Notify your insurer promptly
      Follow the notification requirements set out in your policy. If you’re unsure whether the circumstances need to be reported, speak to your insurance broker for guidance rather than assuming they don’t need to be notified.
   2. Don’t admit liability
      Avoid admitting fault, responsibility or liability, either verbally or in writing, before speaking to your insurer or insurance broker. Even if you’re keen to resolve the matter quickly, it’s important to understand the potential implications before responding.
   3. Don’t agree to a settlement
      Speak to your insurer or broker before agreeing to any settlement or making commitments to the other party. This allows the insurer to consider the circumstances and advise on the appropriate next steps in line with your policy.
   4. Keep a record of what has happened
      Keep relevant correspondence, documents and details of the incident. This information may help your insurer understand the situation and determine how best to proceed.

Unsure whether you need to notify a potential claim?

Not every complaint will result in a claim but waiting until you know how a situation will develop could be too late.

If you’re unsure whether an incident needs to be reported, it’s always worth seeking advice at an early stage. Your insurer and insurance broker can help you understand the relevant notification requirements and what steps to take next.

At Performance Film & Media, we understand the challenges faced by businesses and professionals working across the film, media and creative industries. If you have concerns about a potential claim or need guidance on notifying an incident, get in touch with our team.

Having the right support early can make all the difference.

Please note: Professional Indemnity Insurance is subject to the terms, conditions, exclusions and notification requirements of your policy. The information in this article is intended as general guidance and does not replace the wording of your policy or advice specific to your circumstances.