Insight

What should licensed conveyancers do in the event of a professional indemnity insurance notification?

Published

06 March 2025

Read time

5 minutes

Under a Professional Indemnity Insurance (PII) policy there is a duty to notify a claim, loss, a circumstance or information which may give rise to a claim upon your first awareness and/or when you ought reasonably to have been aware of a notifiable event.

In addition, notification must be made under the policy in force at the time of such awareness.

The following may assist you to identify a notifiable event:

a.

Any demand for damages or compensation, or an assertion of a right against the firm.

b.

Any intimation by a Third Party, whether expressed or implied, of an intention to claim damages from you in relation to any professional advice provided or services performed or alleged to have been provided by you, or by any Party for whom you are responsible.

c. 

Any complaint, adverse criticism, or allegation relating to any professional advice provided or service performed or alleged to have been provided or performed by you, or by any Party for whom you are responsible, which has given or could give rise to Third Party loss or damage.

d. 

Awareness by you that any professional advice provided or services performed by you, or by any Party for whom you are responsible, have failed to meet the standard required and have given or could give rise to Third Party loss or damage.

e. 

The discovery, or reasonable cause for suspicion, of dishonesty or fraud on the part of a past or present Principal or employee, including any consultant or anyone employed under a contract for service.

f. 

Any communication with the firm in whatsoever form invoking any pre-action protocols as may be approved and issued from time to time.

Whether a matter is a claim, intimation of a claim or a circumstance, it is always important to ensure you notify it to your insurer as soon as you can.

When should you notify your insurer?

You should notify your insurer as soon as you first become aware of a notifiable event irrespective of:

i.quantum i.e. whether or not it is within the policy excess;
ii.your own views on liability;
iii.whether you consider the circumstance or claim is spurious or without foundation;
 or
iv. whether you consider the circumstance or claim may not be pursued.                                                                                                                                                                                    

Avoid the potential to prejudice your insurers

You should ensure that you do not take any action without your insurer's prior consent in relation to a notifiable event. It is important that you do not:

i.admit liability.
ii.settle or make or promise any payment.
iii.disclose any information about your PII cover, save for that required in accordance with your regulatory obligations as set out in the section entitled "PII Disclosure vs Regulatory Obligations" below. 
iv.disclose that you have made or are intending to make a notification under your PII.
v.  take any action which might prejudice your insurer's position or their ability to investigate or defend a circumstance or claim.                                                                                                                                                                                     

 PII disclosure vs regulatory obligations

You should not disclose any information about your PII save for that required in accordance with your regulatory obligations. We provide the following by way of guidance:

Clause 8(1) of the Provision of Services Regulations 2009 (as amended) requires firms to provide clients with:

  • contact details for the insurer that provides the compulsory minimum layer of cover; and

  • territorial coverage of the insurance.

The Regulations further provide that the requirement will be satisfied if the information:

  • is supplied to the client on your own initiative; or
  • is easily accessible to clients at the firm's office or electronically from a website address supplied by the firm; or
  • appears in documentation supplied to the client in which the firm gives a detailed descriptoin of its service (e.g. terms of business). 
  • This information should be available to clients as a matter of course as opposed to being a response to a claim or circumstance.

Please note that the above is provided for guidance purposes and firms and individuals should undertake their own review to ensure they understand their regulatory obligations.

How to notify your insurer

Please complete a Notification Form as soon as you first become aware of a notifiable event. The Notification Form asks for essential background information which Insurers need in order to consider a notification, assess their response under the Policy and enable them to determine and agree what action is required.

Apart from expediting the handling of the notification, a Notification Form may act as a reference document and also assists with risk management and insurance disclosure requirements.

In the event that a notification form is not available, please send a letter or email to the address you have been provided for making notifications, enclosing the following information:

i. the identity of your client;
ii.the identity of the claimant (if different);
iii.the date that you first became aware that your services may be deficient;
iv.the date that you first received notice of a claim or intention to make a claim, if applicable;
v.details of the service provided;
vi. details of the actual or potential claim; and 
vii.details of the quantum of the actual or potential claim, if known. 

If you have any questions regarding anything included in this article, please get in touch with your usual claims contact. 

Clarisse Robbins

Clarisse Robbins Dip CII

Associate Director
Howden claims team

Contact the claims team