How important is Professional Indemnity?

Wednesday 08 June 2016

It’s often the case that we don’t appreciate how important having the correct insurance is until we need to make a claim. At this time, the policy you’ve paid for is put to the test for how comprehensive the cover is, and also the quality of the claims service.

Agent Assure, in conjunction with our appointed solicitors DAC Beachcroft, have provided two claims examples that can help to highlight the importance of Professional Indemnity insurance to your business, and the importance of having comprehensive cover and a good claims service to match.

Claims Example – Fidelity Cover

A long-standing employee and friend of the Insured stole significant sums.

The employee admitted theft and the police were involved. The police unfortunately were unable to prosecute as the Insured suffered significant health problems as a result of the incident and was unable to give evidence.

The Insured submitted a claim to Insurers for £32,000.  Forensic accountants investigated the claim and the sum stolen was confirmed to be £36,500 and on the basis of the report, Insurers paid that sum net of the excess under the policy.

The Insured was also given an indemnity of £15,000 towards the accountant's fees they incurred investigating the theft.

Claims Example – Vexatious Litigants

A Landlord alleged that they were induced to enter into the management agreement by a fraudulent representation.

The Landlord claims they were told that the agent would be unable to let the property unless they signed up for the full managed service.  They also claim they were advised that the property would only be let to a reliable tenant with good references.

The Landlord entered into a full service management agreement with the agent because of this.

The Landlord brought a claim against the agent seeking to void the management agreement, thus avoiding the fee due and also seeking further damages in tort for the tenants’ alleged breaches. 

It was ruled in Court that the Claim was vexatious and without merit, but the legal bill was £75,000, which Insurers paid as a defence cost under the terms of the policy. 

Risk Planning – what can you do?

  • Check your insurance policy to ensure you have sufficient cover for your business needs – being underinsured will affect you in the event of a claim.
  • Check the exclusions on your insurance policy, as it is often in the exclusions that you realise what cover is actually  provided.
  • Make sure you do review your insurance to see what other providers can offer, and be flexible to change. Remember – an insurer/broker is only as good as your claims experience. Until then – they have not proven how good their service is!
  • Remember you can switch providers at any time, and you are not restricted to just reviewing your policy at renewal.

Benefits of Agent Assure Professional Indemnity insurance

  • Agent Assure are the official industry supplier of Professional Indemnity insurance for NAEA, ARLA, ICBA, NAVA and APIP and have created a specific policy designed especially for Property Professionals.
  • 20% discount for members of NAEA, ARLA, ICBA, NAVA & APIP*.
  • Full retroactive cover from the day your business started trading.
  • Our policy is written on a 'civil liability' basis - the most comprehensive type of wording.
  • Fidelity cover is included as standard, ensuring you are covered for theft of your money in addition to your clients.
  • Comprehensive claims management from notification to settlement by a solicitor at DAC Beachcroft, a UK top 25 law firm.
  • Defence costs paid in addition to the limit of indemnity purchased.
  • Underwritten by a highly rated insurer.
  • 0% premium financing available with no deposit.
  • Option to add on Cyber Liability cover up to £10,000.


If you’d like to find out more about our Professional indemnity insurance designed specifically for NAEA, ARLA, ICBA, NAVA & APIP members, simply complete our Online Proposal Form or call us today on 0207 7888 406.


View our: eBrochure  


* Subject to terms and conditions as follows:

  • 20% discount is provided by ACE European Group.
  • The 20% discount only applies to the Professional Indemnity product with ACE.
  • The 20% discount is applicable at both new business and renewal.
  • The discount is deducted from the premium at point of sale as against the premium prices quoted by ACE for non ARLA and NAEA members.
  • Only current ARLA & NAEA members are entitled to the discount. Proof of membership to ARLA or NAEA may be required.
  • Claims history may affect eligibility.
  • We or ACE European Group reserve the right to revoke or amend this offer at anytime. 

Agent Assure is a trading name of Ink Underwriting Agencies Limited which is authorised and regulated by the Financial Conduct Authority. Registered Office: The Walbrook Building, 25 Walbrook, London EC4N 8AW. Registered in England and Wales. Company Number: 03110970. Ink Underwriting Agencies Limited part of Arthur J. Gallagher.