Cheaper PI product launched for managing agents

A new professional indemnity insurance has been launched for managing agents.

The Deacon product provides comprehensive cover against potentially damaging claims and legal action.

Penny Jepson, head of business at Deacon, said: “Most managing agents work to a high standard and are well aware of their statutory obligations, but mistakes do happen.

“People are increasingly intolerant of human error, especially where a financial cost is a result, so professional indemnity insurance is absolutely essential to protect an agent’s business, as well as being a condition of membership of the industry’s trade associations and professional bodies.

“Because our new policy has been specially developed for managing agents, the premiums are extremely competitive. For example, most managing agents don’t conduct surveys themselves, but many existing policies automatically charge for this in their cover. At Deacon, we believe that businesses shouldn’t pay for cover they don’t need.

“In today’s increasingly litigious world, this tailored cover also offers the best possible protection against failure to comply with the minefield that is the Section 20 consultation process.

“We had a recent case where the insured was appointed to manage the refurbishment of a block of flats, some of which were in private ownership. In order for the council to recover their costs from private residents, Section 20 notices had to be served and the requisite notice period had to expire before work commenced.

“The insured appointed contractors before serving the Section 20 notices, which delayed the start of the works. The contractor then sued for costs incurred, in the region of £200,000.

“I can’t stress enough the importance of PI insurance, and would urge managing agents to check the extent and cost effectiveness of their existing cover. It really could save them from unrecoverable financial disaster in the future.”

www.deacon.co.uk