Firms facing the possibility of making a Professional Indemnity (PI) claim must ensure they notify their insurer of the full details of the case, it has been advised.

Derek Bambury of legal practice Browne Jacobson tells Mortgage Solutions that failing to give complete information could lead to a claim being rejected.

His comments follow the case of HLB Kidsons v Lloyds Underwriters, in which the claimant - an accountancy firm - sold tax minimisation products under a different name.

Mr Bambury suggests that the accountant's PI provider was told "in vague terms" of possible problems arising from such activities.

"When Kidsons sought, after the currency of the policy, to claim indemnity against a number of claims, their insurers contested that the notification had been insufficient," he tells the publication.

As such, HLB Kidsons was deemed by its insurer not to be protected against PI claims which occurred after the expiry of its policy and against the tax minimisation part of its business.

Specialist PI insurance broker PYV, located in the City of London, takes a hands-on approach to providing a caring and personal claims service.

Robert Bass, claims director at PYV, said: "In order for a firm to protect itself it must leave its insurers in no doubt as to what is being notified and why. It is an issue of particular importance when changing insurers as a new insurer will exclude any matters arising from a previously notified incident. Clearly defining the notification in question is therefore paramount, especially where continuity of insurer is not maintained."

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.