Frequently Asked Questions

Q. Why buy Excess Professional Indemnity Insurance?

A. In recent years Bar Mutual has made the two largest claims payments in its history, both of them materially in exc­ess of Bar Mutual's basic £2.5M of cover. As a result, in his Interim Report of January 2009, the Chairman of Bar Mutual stated: "The incidence of such large claims should cause all practicing barristers to give very careful consideration to purchasing adequate levels of cover. Excess layer cover is readily available and affordable. However, far too few barristers purchase it. In 2008, less than 1,000 barristers purchased cover in excess of £5M – this represents about one tenth of civil barristers. At this level of take-up, there is a high chance that a barrister will suffer a personal financial disaster as a result of being under-insured."

Endorsed by Bar Mutual, the TLO scheme provides cover for a variety of indemnity limits (up to a maximum of £100M) in excess of the basic cover of £2.5M provided by Bar Mutual. Premiums are fixed irrespective of fee income or work type (other than certain types of Revenue work) and the cover is underwritten by a panel of many of the world's largest insurance companies and other specialist professional indemnity insurers. The cover follows Bar Mutual's terms and conditions and renews annually on 1 April.

Insurance premiums are tax deductible and so normally the net cost will be 60% of the gross

Q. What limits can I purchase?

A. In order to purchase excess layers of cover, you must purchase a minimum primary limit from the Bar Mutual of £2.5 million.  You can then purchase a variety of levels of cover ranging from an additional £2.5 million to an additional £122.5 million.

Q. What is the policy period?

A. In line with the Bar Mutual underlying layer, the policy runs annually from 1st April to 31st March. Cover can be incepted part way through this period subject to a pro-rata charge.

Q. How can I pay?

A. We accept payment via cheque or BACS.

Q. If I already purchase excess layer cover, can I increase my limit of indemnity during the year?

A. Yes - additional layers of cover can be added, up to a maximum total limit of liability of £125 million.

Q. What is Additional Legal Services cover?

A. The interpretation of Legal Services in Bar Mutual's rules specifically excludes certain activities such as lecturing in or teaching law or writing or editing law books articles or reports.  Our policy automatically extends to provide cover for these additional legal services up to a limit of £500,000 subject to an excess of £500.  Please refer to the specimen policy wording provided with your quotation for full details.

Q. How do I make a claim?

A. Please contact us on 020 7839 0472 for any matters relating to claims or circumstances that may materialise into a claim.  We will fully support you through the appropriate claims process.

Q. Any other questions?

A. If you have any other questions that are not answered above, then please contact us on 020 7839 0472 or email us at barristers@tloinsurance.co.uk