Professional Indemnity insurance Scheme Renewal – 2021 - 22

• Often including a broad exclusion of indirect or consequential losses. This generally means there is no cover for loss of profit, loss of rent, or production value. • Removing cover for any claims arising from bodily injury. That is, of course, if they offer any cover for fire safety related claims at all. The Scheme Specification It is against this backdrop that we have been negotiating the fire safety cover for our own Scheme. The positive news is that the ‘default’ position for the majority of our clients is that: • We have been able to maintain the basis on which cover has always been historically provided (i.e. the broad legal liability basis of cover) and we will continue to provide cover for ‘indirect or consequential losses’ as now. • There will be no move to restrict the cover to ‘negligence’ and/or rectification’ costs only. •The policy will still provide an aggregate, costs inclusive limit of indemnity. This position has, however, come with certain conditions. Effective from the 1 st November 2021, but applying at the date of your next renewal, the limit of indemnity available in respect of a ‘legacy’ Fire Safety Notification (‘FSN’) will change. Please follow this link for a refresher on the policy definition of a FSN. The intent is that where a FSN is made in respect of a claim or circumstance that might give rise to a claim arising from: • any building work commenced before 1 st November 2019; the Limit of Indemnity available will be no greater than £1,000,000. That limit will apply in respect of all such FSNs in the policy year . As now, that sum will be inclusive of costs and in the aggregate. • any building work commenced on or after 1 st November 2019, the Limit of Indemnity will be no greater than your policy limit (i.e. a costs inclusive aggregate sum at the level of your general limit of indemnity). These two limits are not separate: the insurers will only pay a maximum of the limit of indemnity for all FSNs in the period of insurance (i.e. you won’t enjoy a £1m limit