We are able to cancel most policies though some are “non-cancellable covers. Certain occupations and certain insurers (ie Lloyds syndicates) may have this requirement. There are a number of reasons this is done primarily because Professional Indemnity is a claims made policy and once it is cancelled, there will be no coverage protection for any of your past work performed. Claims do not always arise immediately after an error or omission is made, it can be found a few years later and it is at that time you make a claim but only on a current policy. Therefore it is normal practice to “run off” the risk by continuing cover.
The public liability is not too much of an issue as it is a loss occurring cover, and the date the incident took place within the policy period will be covered.
If the policy allows it to be cancelled, then generally a prorated premium is calculated less an administration charge (approx 20% of the return premium) and this is returned to you. However if you have funded the premium (paying off in monthly instalments) then it is first returned to your premium funder to pay off the remaining amount owed. They either collect any balance owing or return any left over to you.
To formerly cancel, we need an effective date and your instructions in writing to cancel from that time as we forward this to the insurers. We will then arrange from there.
If you wish to discuss this further, please do not hesitate to call us.