Previous policy claims can involve engineering work completed while an earlier insurer was on risk, but the current policy may still be relevant depending on the circumstances.
Professional Indemnity policies commonly operate on a claims-made-and-notified basis. The policy position can therefore depend on:
- when the claim was first made
- whether relevant facts or circumstances had already been notified
- the retroactive date under the current policy
- whether there has been continuous PI cover
- any prior-known-circumstance or prior-notification provisions
- the wording of both the current and earlier policies
If relevant facts were properly notified to an earlier insurer before that policy expired, that earlier notification may be important when a later claim is made.
If nothing was previously notified, the current policy may still be relevant to older work where the retroactive date and other policy terms allow it.
Engineers should provide the broker with the current policy, any earlier policies or certificates, and details of any previous notifications so the correct insurer position can be assessed.
