Can I claim Professional Indemnity Insurance against tax?
A Professional Indemnity Insurance premium is tax deductible, helping to make a policy even better value for your business.
What is a retroactive date in Professional Indemnity Insurance?
A retroactive date refers to the date from which you first took out a Professional Indemnity Insurance policy and have held uninterrupted cover since, even if you have used different insurers during that time. Any claims made against you that happen before this date, will not be covered by your Professional Indemnity Insurance. When taking out cover you can ask for your policy to be backdated to a time when you did not have Professional Indemnity cover to provide protection should a claim from that period be made against you.
What is Run-Off cover?
Even if your business has stopped trading or you sold the company, you are still potentially liable for claims made against you from past activity. This means you should consider buying Run-Off cover for a period after you have ceased trading.
Does Professional Indemnity Insurance contribute toward acceptable capital adequacy levels?
FCA regulated firms are required to meet certain regulatory capital requirements and buying Professional Indemnity Insurance is a way of reducing those requirements. If a firm does not have Professional Indemnity cover, they would face sanctions from the FCA for being in breach of their capital requirements.
To discuss any of the issues raised in this article, contact us on 0330 029 6525 or email us at professions@aon.co.uk
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