Headley Insurance Services Ltd
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PROFESSIONAL INDEMNITY INSURANCE 

Industries A - E

Examples of actual claims made and settled by Insurers.

 

 

Miscellaneous – A

Actuaries

The Insured used incorrect tables for an annuity scheme which led to overpayment to the annuitants.

£1,300,000

It is alleged that the Insured carried out a negligent valuation of a company’s pension fund prior to the sale of the company.The purchaser claims a shortfall on the valuation.

£908,000

The Insured over-valued part of a pension fund resulting in an overpayment.Any chance of recovery would be time-barred.

£500,000

It is alleged that due to an error in the costings of a pension, an employee is receiving a higher pension than intended.A claim has been made against the actuaries for the additional cost to the employers.

£250,000

Money was transferred from one fund to another but a miscalculation resulted in an overpayment to the policyholders.

£120,000

 

Agricultural Consultants

The client alleged negligence in work done for a co-operative.

£100,000

The Insured gave advice concerning the application of chemicals to a field of winter wheat.It was alleged to have resulted in the crop being severely scorched and the yield reduced.

£70,000

It was alleged that the Insured gave negligent advice regarding spraying for potato blight.

£15,000

The client alleged that as a result of advice given by the Insured, his crop suffered wire-worm infestation.

£14,000

The client’s crop suffered from a fungal disease as a result of the alleged failure of the Insured to provide correct advice in the treatment of the crop.

£10,000

 

Auctioneers

The Insured sold property at auction over a number of years.It is alleged that the property was stolen and a claim has been brought for conversion.

£260,000

The Insured was instructed to sell antique ornaments by someone purporting to act for the owners.A claim has been brought for conversion as a result of the owners of the property alleging that they had not consented to the sale.

£120,000

 

Audio and Video Facilities

A TV commercial was produced but when it was transmitted it was discovered that there was no sound because the spools were incompatible.

£25,000

 


 

Miscellaneous – B

 

Biotechnical Consultants

 

It is alleged that a waste treatment plant designed by the Insured failed to operate adequately resulting in higher than permitted discharge levels into the adjacent river.A claim has been brought for costs of rectification.

 

£30,000

 

 

Building Society

 

 

The Insured advanced money to a company in respect of a property purchase.Arrears mounted and the borrower went into liquidation.The Insurer’s solicitors (in house) had not registered the charge.

 

£80,000

 

A local branch manager was involved in a fraud by processing inflated mortgages through bogus valuations.

 

£65,000

 

A valuation report omitted any reference to subsidence.

 

£55,000

 

An account was wrongly credited with a substantial amount of money.Almost all of it had been withdrawn when the error was noted.

 

£40,000

 

The Insured permitted accounts to be set up for a society where only one signature was necessary to make withdrawals.A number of such accounts were subject to fraud.

 

£35,000

 

A valuation failed to point out serious defects in a property which was worth only site value.

 

£14,000

 

It was alleged that the Society gave inaccurate investment advice.A claim was brought for loss of interest.

 

£13,000

 

Miscellaneous – C

 

Cargo Surveyors

Cargo which was inspected by the Insured was later found not to conform to specification.

£150,000

Company Registrars

Registration work was carried out in connection with the launch of a unit trust fund.Units were sold back to the fund but the Insured failed to comply with the two month deadline to reclaim stamp duty.

£81,000

During the takeover of one company by another the Insured under-recorded the number of acceptances on a computer, thereby involving their client in a substantial loss.

£40,000

Company Search Agents

The Insured were negligent in carrying out a company search causing their client additional expense.

£30,000

The Insured advised their client that there would be no objection to their proposed name after carrying out a search.A company with a similar name issued an injunction.

£10,000

Company Secretaries

It is claimed that the Insured failed to file annual returns on behalf of a new company with Companies House.The client was struck off the Register resulting in bank accounts being frozen.The client also alleges loss of business.

£20,000

Computer Bureau

It is claimed that a mistake in a computer program caused clients’ mailshots to be sent to incorrect addresses.

£250,000

Due to errors in a national consumer database, mailshots were sent out to the wrong addresses.

£100,000

Conference Organisers

The insured was negligent in the organisation of a conference which proved to be a total failure as a result.

£290,000

Documents and transparencies produced for a conference were damaged.

£21,000

Consulting Chemists

The Insured incorrectly diagnosed a harmful chemical as being present in a food sample.The client is claiming for all costs incurred in recalling the food from retail outlets.

£100,000

Metal bars did not actually contain the certified metal contents.

£80,000

Contract Research Consultants

The client alleged negligence in surveying for the presence of blue asbestos.

£50,000

Cost Consultants

It is alleged that in costing for a heating system for a block of flats the Insured omitted certain items and under-priced others.

£60,000

 

Miscellaneous – D

 

 

Direct Mail Specialists

 

 

Notices advising customers of a financial institution, concerning an interest rate change were despatched incomplete.Re-mailing was required.

 

£27,000

 

Draughtsmen

 

 

The Insured produced drawings for structural steelwork which contained several errors, resulting in delays and extra costs.

 

£30,000

 

A client alleged that the Insured failed to carry out his instructions, resulting in a duplication of work by builders.

 

£25,000

 

Drawings for extensive steelwork were delayed, which resulted in penalties and losses being sustained by the contractor.

 

£15,000

 

 

Miscellaneous – E

 

Educational Establishment

 

 

The establishment was commissioned to provide a computer system in connection with a television broadcast.The system broke down and a claim was made for the costs of making alternative arrangements.

 

£25,000

 

It was alleged that research by the Insured in regard to potential foreign students was badly planned and produced no benefit to the client.

 

£15,000

 

Estate Managers

 

 

The Insured negligently supervised tree planting on part of an estate.The area is now significantly understocked.

 

£50,000

 


Ensure that these claims don't happen to you and your company, please contact us now and we will be happy to advise you on a professional indemnity policy that is tailored specifically for your needs.

We can be contacted by telephone on 01420 594242, or by filling in our On-line Form.

 

 
Headley Insurance Services Limited is authorised and regulated by the Financial Services Authority in respect of general insurance business.
 
| Headley Insurance Services Ltd, William Curtis House, Lenten Street, Alton, Hants GU34 1HH |
| Offices also at: 1551 Wimborne Road, Kinson, Bournemouth BH10 7AZ |
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