The UK High Court recently handed down a judgement that has sent a clear warning to all professional laboratories that buy or are required by law to carry professional indemnity (PI) insurance
In a high profile case that hit the insurance headlines, HLB Kidsons v Lloyds Underwriters, the plaintiff found its PI policy was ruled ineffective as it had failed to notify the insurer soon enough after it became apparent that a claim might arise.
Jamie Eaton, business development manager at Howden, advises: "Once an insurer is aware of a potential problem, then any resulting liability will be covered by the insurance policy should a claim arise.
"There is a persistent myth that if you notify insurers of problems or potential claims, this will adversely affect your premium.
"This is simply not the case with professional indemnity insurance, and without adhering strictly to the claims notification requirements of a policy, a laboratory might even find its cover void when it comes to making a claim.
"The most frequent question raised by our clients is how to know when a situation warrants notifying a claim, and if so, when to do it.
"Our advice is always - if in doubt contact your broker and notify the claim.
"It will not affect your premium, and it could save you a lot of money and heartache".
Howden is a specialist professional indemnity broker with one of the most respected claims teams in the UK.
It recently launched Labsure, a new liability insurance package providing laboratories approved by the United Kingdom Accreditation Service (Ukas) with unparalleled levels of cover at an affordable premium.
Labsure provides Ukas accredited laboratories with protection for all key business critical risks including professional indemnity, employers' liability, public and product liability, buildings and contents, and - depending on the needs of individual laboratories - directors' and officers' liability.
