What to notify your PI Insurer
A simple act, error or omission can be enough to trigger a complaint against you from a borrower or lender. If this escalates to a legal claim, the consequences can be serious. You could find yourself liable to pay compensation, costs and expenses. At the very least your firm may incur legal costs.
A 'known circumstance' could be defined as any fact, situation or circumstance, which a reasonable person in the insured’s professional position would have thought, might result in someone making a claim against him/her.
A claim means any demand made by a third party upon the Insured for compensation, however conveyed, including a writ, statement of claim, application or other legal or arbitral process.
Withdrawal of Accreditation
Withdrawal of accreditation from a Financier (other than due to lack of business or withdrawal from the broker market).
A breach in the financiers and/or company guidelines.
A customer complaint (even if thought to be resolved).
Third party fraud is the most common type of claims for Finance Brokers. Being an intermediary, if a third party has perpetrated fraud (be it a customer &/or a supplier), sometimes allegations can arise relating to the brokers conduct in the transaction(s) either by the lenders, customers and even regulatory authorities.
This is a guide only and is not an exhaustive list, if in doubt notify to ensure that you are afforded protection under your policy in the event that a formal claim should arise. When the policy period expires, no new notification of facts can be made on the expired policy even though the event giving rise to the claim against you may have occurred during the policy period.