professional indemnity and public liability insurance

And, don't forget that PI insurance is ongoing. There is a legal expression that eludes me for this and some of my following comments but I'm just trying to give you the "head's up".


What I understand about PI cover is that if you take out say £100k this year (call it year 1) but next year (year 2) increase this to £200k, any claims that arise from an "incident" in year 1 or 2 will be covered for up to £200k. Great you say, but the converse works that if in year 3 you reduce your cover to £50k, any claim for an incident in years 1, 2 or 3 will be limited to £50k. Taking this to its logical conclusion suggests that if you don't renew in year 4, you have no cover for any of your previous years........................ So for retirement, I'm looking to buy a non trading policy to cover me for the next three or five years whilst not working just in case any claims arise. So far enquiries are looking at 2 x previous annual payments.........................


Regards


BOD

And, don't forget that PI insurance is ongoing. There is a legal expression that eludes me for this and some of my following comments but I'm just trying to give you the "head's up".


What I understand about PI cover is that if you take out say £100k this year (call it year 1) but next year (year 2) increase this to £200k, any claims that arise from an "incident" in year 1 or 2 will be covered for up to £200k. Great you say, but the converse works that if in year 3 you reduce your cover to £50k, any claim for an incident in years 1, 2 or 3 will be limited to £50k. Taking this to its logical conclusion suggests that if you don't renew in year 4, you have no cover for any of your previous years........................ So for retirement, I'm looking to buy a non trading policy to cover me for the next three or five years whilst not working just in case any claims arise. So far enquiries are looking at 2 x previous annual payments.........................


Regards


BOD