Keydata fallout: are you paying too much for PI?

KEYDATA

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PI insurers may be asking those named in the Keydata litigation to pay too much, warns Rob Fink, partner at Fenchurch Law. The trick is to find out how many policy excesses really apply.

If you are named in the Keydata litigation and your professional indemnity (PI) insurer suggests a settlement offer should be made to the Financial Services Compensation Scheme (FSCS), make sure you clarify exactly what the position is in respect of your policy excess before agreeing. If your PI insurer suggests you should be contributing a policy excess in respect of every individual you advised to invest in Keydata, then they are very possibly wrong. The Keydata litigation was not anticipated by the majority of PI insurers and the ambiguities in some policy wordings reflect this. Fi...

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