Downturn 'highlights need for D&O and PI insurance' - Directors' and Officers' liability and Professional Indemnity insurance for IFAs

11/06/2009

Written by Professions Division

The economic downturn will only serve to highlight the need for financial services firms to ensure that they have Directors and Officers (D&O) insurance in place, it has been suggested.

In addition, the current financial climate also proves the need for companies to have comprehensive Professional Indemnity insurance, claims Doug Robare, financial and professional lines manager for Zurich.

As such, he tells Insurance Times that the take up of D&O and PI insurance for financial service providers is set to increase over the coming months.

Speaking of the financial crisis, Mr Robare states that "it highlights the necessity to have proper coverage in place with qualified insurers and make sure you have very good risk management".

Neil Pointon, CEO of specialist Lloyd’s broker PYV, agreed and added: "We strongly recommend that IFAs and mortgage brokers ensure they have insurance to cover all of their liabilities and not just buy the minimum levels of PI that they are mandated to carry by the FSA. To help cover these exposures, we are now able to offer them Hiscox's Management Liability Portfolio insurance package on an exclusive basis which includes section for D&O, Corporate Legal Liability and Employment Practices Liability."

The publication also points to research by Willis revealing a continued hardening in insurance rates since last summer, something that has partially been attributed to rising PI claims against UK asset management firms.

In an article written in March, Roger Flaxman, founder and principal of professional insurance claims consultants Flaxman Partners, claimed that obtaining PI and D&O insurance will become an increasing area of concern as the economic downturn sees surveyors and valuers exposed to the losses incurred by construction firms.

Click here for more information about D&O.

Click here for more information about Professional Indemnity in general.

Click here for more information about Professional Indemnity in general.
PYV are one of the UK's leading providers of professional indemnity insurance. This news article has been produced by Adfero in collaboration with PYV and its unauthorised use is not permitted.

(c) 2009 Adfero Ltd.

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