In our September 2010 update we mentioned about the need to include reference to being licensed to act as an IP “in the UK”. I have now had chance to look at the Regulations in a bit more detail and in this article I am covering the other main additional disclosure requirement required by the Regulations, relating to professional indemnity insurance. For information about the various other disclosure requirements in the Regulations, either have a look at the explanatory leaflet prepared by Department for Business Innovation and Skills which can be found at www.bis.gov.uk/files/file53100.pdf, or at the information provided by your regulatory body. These disclosure requirements apply to all IPs.
The Regulations require that the information that has to be disclosed by a practice, including that relating to professional indemnity insurance, must be made available to those who wish to use your services, e.g. to the Board of Directors in Administrations, CVAs, MVLs and CVLs and to the debtor in IVAs, before the service is provided, and that information is considered to be made available if:
• it is provided on the practice’s own initiative – e.g. on business stationery or in brochures;
• it is made easily accessible at the place where the service is provided by the practice or the contract for the service is concluded – e.g. by way of a notice at the practice’s offices;
• it is made easily accessible electronically by the practice – e.g. by providing the exact address where the information can be found on the practice’s website; or
• it is provided in any document supplied by the practice in which a detailed description of the service to be provided is set out – e.g. in the engagement letter.
As regards professional indemnity insurance, the Regulations require that the name and address of your professional insurance provider, together with the territorial coverage of the cover provided must be made available. You can satisfy the disclosure requirements of the Regulations by, for example, having a copy of the insurance certificate on the wall of the reception area at your practice or including reference to it in your engagement letter. The following is some suggested wording for your engagement letter:
“In order to comply with the Provision of Services Regulations 2009, the practice’s professional indemnity insurance is provided by [name of insurer], of [contact address]. This professional indemnity insurance provides worldwide coverage[, excluding professional business carried out from an office in the United States of America or Canada, and any action for a claim bought in any court in the United States of America or Canada].”
