30-Day Extended Policy Period (EPP)
If you have not obtained qualifying insurance prior to expiry of your current policy, it is possible to extend the existing policy by 30 days (see ICAEW’s minimum approved policy wording clause D3). This should allow you to explore options with other insurers or if necessary, arrange cover in the Assigned Risks Pool.
Assigned Risks Pool (ARP)
The ARP is for firms that are unable to obtain PII in the insurance market. It provides emergency cover for a period of up to two years but can be expensive. Run-off cover can also be provided in the ARP.
To enter the ARP, members need to arrange payment of the Initial Deposit Premium. A final premium will then be assessed.
- Find out more about the Assigned Risks Pool
- Contact the ARP manager
- Find out about the dangers from gaps in PII cover
Members scheme – PII
ICAEW does not mandate that members use a particular broker; however, we do recommend that you check that your own broker has access to all markets and is not tied to particular insurers.
Some firms who have experienced difficulty obtaining cover in the market have managed to obtain a compliant quote via the PII insurance available through the Members Reward Scheme. If you are struggling to find insurance, you may wish to contact the members scheme to find out if insurance is available for your firm.
Non-compliant quotes
We understand that your broker may currently be exploring the market, and that you may have received one or more quotes for insurance but not on a compliant basis (non-qualifying insurance). In such circumstances, if you are unable to find compliant insurance, there is the potential to apply for dispensation from the PII Committee, but this is only ever granted at the absolute discretion of the PII Committee, and all other options should have been explored.
Dispensation
The PII Committee has the power to award dispensation for a non-compliant insurance policy in exceptional circumstances only. A firm considering applying for dispensation should read regulation 5.3 of the PII Regulations and then contact the Technical Advice Line for further information.
The PII Committee will consider a firm’s application and circumstances in detail and can make any award subject to conditions. Further information is contained in regulation 5.3 and Appendix B of the PII Regulations. In every case the PII Committee decides whether a firm is required to publish on its own website and within its terms and conditions/engagement letters, the fact that it has received dispensation, and the level of detail required surrounding that disclosure. An application may also attract a fee.
If you are struggling to find insurance, you can also contact the Technical Advice Line for support.