Welcome to more real-life professional indemnity insurance claims stories.
This one involves an accountant, though. It's a bit different because it comes straight from the horse's mouth.
It's written by the policyholder - for the sake of confidentiality, we’ll call them NumbersUp Accounting.
We think it gives valuable insight into what a potentially ruinous professional indemnity insurance claim against your business feels like. It also shows that it needn’t be the end of the world if the worst does happen.
Over to you, NumbersUp.
Name and shame
I was too embarrassed to call my broker at first! It was hard to admit that I’d made a few minor mistakes which had snowballed into a claim for £6,000 in damages. What do I say? How do I report it? What will they think of me? Am I even covered?
After worrying about it all weekend, I bit the bullet first thing Monday morning and phoned PolicyBee. I spoke to Jane who was really understanding and sympathetic from the offset. We talked through everything from start to finish and she gave me step-by-step instructions on what I should do next.
I sent Jane a short chronology of events and copies of all the emails and letters I'd received from my client. She told me to sit tight and that said she'd get back to me in a couple of days once she'd discussed everything with the insurer. I didn't hear anything for a few days but sure enough, as promised, I received a call on the Thursday morning confirming that I was covered. It was like music to my ears.
Real value
I wrote a letter to my client (with the help of the insurer) asking for a full breakdown of costs so we could establish exactly what I needed to claim for. As it turns out, the rectifying accountants had put additional fees on for work they'd done after I'd stopped working on the accounts. The insurer responded with a prompt proposal for a significantly lower sum which, to my surprise, my client accepted.
The whole claim was settled within three weeks of my first phone call and I could finally put the whole sorry situation behind me. I can't believe that I got in such a state about reporting the claim to my brokers! I always thought professional indemnity insurance was a waste of money and never really understood what it covered me for. But I wouldn't be without it now.
Also, I now know how important it is to have someone on your side who knows what they’re doing, and who’s prepared to fight your corner. I’m sure all insurance brokers would do the same. But, unfortunately, you won’t find that out until you have to make a claim.
Help you can count on
It pays to know some real-life professional indemnity claims stories. It shows the kinds of sticky situations that can land you in hot water are also the ones your broker's best-placed to advise you on. Whatever the nature of the dispute, you're never alone.
Find out more about how professional indemnity insurance protects accountants. Or call the team on 0345 222 5391.
Image used under license from Shutterstock.
accountantsclaimsmanaging riskprofessional indemnity insurance