Why you should be very careful about cancelling your Professional Indemnity Insurance PolicyJuly 14, 2020
If you are no longer working or operating your business, you might think it is okay to just cancel your Professional Indemnity Insurance. This couldn’t be further from the truth and you could be opening yourself up to a huge risk.
Professional Indemnity Insurance works on a “claims made” basis. This means that in order to provide coverage you need to have a policy in place when the actual claim is made against you, even if the act, error or omission was committed 2 years ago and has only just come to light.
If you are considering cancellation or require some advice, please speak to your Commercial Insurance Broker in Geelong or Werribee – it may be that you should maintain your policy or at least take “run off cover”.