The news that Norwich Union has suffered a £1.5m loss from alleged staff fraud joins several other well-known names that have been victims of employee misbehaviour in recent years.
And, after the Policyholders Protection Act [1975] was repealed, just before the demise of Independent Insurance, the subsequent Financial and Market Services Act made brokers who collected premiums by credit card liable to return payments to insureds.
So, do all insurance companies carry adequate professional indemnity cover to meet these types of losses?
John Lynch
Insurance Advisory Service
Send letters to: Insurance Times, 30 Cannon Street, London, EC4M 6YJ or email
letters@instimes.co.uk or fax 020 7618 3499
