PI run-off cover 'scarce' in long-stop absence

Scott Sinclair
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An influential adviser is calling on insurers to increase the availability of Professional Indemnity (PI) run-off cover to ease fears over delayed complaints.

Harry Katz, principal at Norwest Consultants, says availability is scarce because insurers are largely unwilling to insure retired advisers for advice given long ago. It follows confirmation from the FSA last week it would not be re-introducing a 15 year ‘long-stop', or time limit, on complaints. "It's difficult to get hold of [run-off cover] because insurers don't like commitments running back that length of time," Katz says. PI insurance protects advisers financially in the event of "negligent acts, errors or omissions" being made by their practice. It is designed to meet the ...

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