Malpractice and Professional Indemnity Cover announcement

The COVID-19 pandemic has brought many changes to the insurance market. Group policies are now subject to more stringent Financial Conduct Authority (FCA) rules and the current insurance market is particularly challenging. Described by the insurance industry as a “hard market” - this is where there is less insurer appetite, or capacity to provide quotations, which in turn causes increase in premiums and reduction in the cover provided.

As a result of the hardening of the market, and increased FCA regulation, insurers are unwilling or not able to provide group cover to us going forward as they did in the past, at any cost.

In advance of the insurance policy deadlines, the IBMS works with a specialist insurance broker who finds the best level of coverage for our members’ requirements. Our current group medical malpractice and professional indemnity insurance policy provided by Hiscox was due to expire at the end of March 2021.

Hiscox decided that they would not be willing to renew our current policy, but they did agree to extend on a monthly basis until we found another policy. They have given us a final extension until 30th September 2021 whilst we continue to look for alternative arrangements.  The cost of this 6 month policy extension (from 1st April to 30th September) has risen dramatically to £190,000 instead of the previous annual cost of £45,000.   

This final extension also has some new terms which we need to make you aware of - the message we have been asked by Hiscox to communicate to you is as follows:

“Please note some important changes are being made to the terms and conditions in respect of the Institute of Biomedical Science’s Professional Indemnity and Medical Malpractice group policy which covers you for your activities as a biomedical scientist. 
 
With effect from 1st July 2021 certain listed communicable diseases are now excluded from the policy, these are stated within the policy wording  - this is available in from the Professional indemnity insurance page on the IBMS website (login required to access) and includes COVID-19 as a listed disease. Claims arising from pandemics and epidemics as defined by the wording or claims arising from communicable diseases which result in restrictions in travel or the movement of people or animals by a competent authority are not covered."

We apologise for any uncertainty that this will cause those members that are not covered by insurance via any other route (such as by your employer). Please be assured we are working hard to find alternative arrangements, and we will provide members with further updates as soon as possible.