Practical guidance for members faced with Covid-19 Related PI Claims
The ongoing Covid-19 pandemic is having a considerable effect on all of us including your customers. Regrettably the majority of UK businesses have found that their insurance cover does not include pandemics.
Some businesses feel that they should have legal recourse from the insurance sector which may result in some insurance brokers becoming embroiled in legal action. If you have had an approach of this nature it is important to contact your professional indemnity insurance provider.
BIBA recognised early in the crisis that members may need expert strategic guidance in this area and to that end, we have been working with the law firm and BIBA Associate Member, Weightmans to create a paper: Guidance on responding to complaints and the defence of professional negligence claims arising from or connected to the absence of insurance cover for business interruption losses caused by or connected to Covid-19 for BIBA and its members
This extensive guidance document is designed to help BIBA’s members consider and identify the potential strategies which may be used to defend individual claims. It is available upon request to any member that has cause to believe a client may bring a case against them in relation to business interruption cover. It will be provided to you, on a strictly confidential basis, to aid your defence and we have to ask that it is not shared or forwarded outside of your organisation. other than with your appointed legal advisers or PI broker and you may contact BIBA for details of how to share the information.
The practical guidance provides background and includes legal opinion on matters including arguments in defending a claim; broker duties; breach of duties; causation; cover and loss. It also gives helpful advice on managing a claim and any media attention it attracts.
For ease, the arguments are also summarised in a tabular format in an appendix.
We have spent time getting this guidance right for you and unusually it is a piece of work that we hope members will not have a need for. However, if you are concerned that you may have clients that hold you responsible, contact us for the guidance and be sure to speak to your professional indemnity insurance provider.
If you have any questions or concerns, please contact us right away.
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