PI insurance: limits of indemnity

By Peter Mansfield, Ben Goodier, and Ellie Crespi, CMS Cameron McKenna, Bristol

Insurers now face potential risks for costs above their limit of liability. In a recent case professional indemnity insurers were ordered to pay the claimant’s legal costs of up to £1mn, in addition to the limit of indemnity of £2mn. This is the first time that the court has exercised its power to award costs against a non-party in a PI context.