Cancelling or not renewing your VDS PI Policy

Your VDS PI Policy provides indemnity for the following:

• Civil liability relating to breach of professional duty, accidental trespass and breach of any statute or regulation affecting the practice of veterinary medicine which arises out of Normal Veterinary Work undertaken on behalf of the Practice (as described in the Proposal Form). The cover also includes indemnity for Claims that arise from the provision of Emergency Veterinary First Aid and Pain Relief (VDS Professional Indemnity Policy Section 2)
• Representation Costs arising from disciplinary proceedings brought by the RCVS or VCI and criminal proceedings where they relate to Normal Veterinary Work (VDS Professional Indemnity Policy Section 3)

Section 2 of the VDS Professional Indemnity Policy is written on a Claims Made basis (see Advice Note: Claims Made basis, Occurrence basis and Retroactive Date of Inception). If you cancel your VDS Professional Indemnity Policy (or do not renew it) you should understand that since you no longer have an active Policy with the VDS you will not have cover under Section 2 for Claims that are made after the Policy is cancelled or ends, even if the Claim relates to veterinary work undertaken at a time when you had an active Policy with the VDS, unless you are able to rely upon one of the Extended Reporting Periods provided within the Policy (see below).

If you later take out a new insurance Policy it will routinely include a Retroactive Date of Inception (RDI), set as the start date of the new Policy. Your new Policy will not provide any cover in respect of claims that related to veterinary work undertaken before the Retroactive Date of Inception and you may wish to discuss your options for reinstating your original RDI with your insurer.

Section 3 of the Policy is written on an occurrence basis and the Policy’s RDI is not applicable. Cover under Section 3 is not affected by cancelling the Policy or not renewing, since the former Policy will still respond, so long as the events that give rise to the disciplinary or criminal proceedings took place during a Period of Insurance where you were listed on the Schedule as a Covered Person.

There is, of course, no cover under Section 2 or Section 3 in respect of any Claim that relates to Normal Veterinary Work undertaken after a Policy is cancelled or not renewed.

If you have allowed your cover to lapse or you require cover for veterinary work undertaken before the start of any new Policy you can discuss your requirements with the VDS and we can explain the options available to you.

‘Extended Reporting Periods’

Practice that Permanently Ceases to Trade

The Policy provides an automatic Practice Cessation Extended Reporting Period (Practice Cessation ERP) that operates if the Practice specified in the Proposal Form permanently closes and ceases to trade. The Policy in place at the time that the Practice ceases to trade will continue to respond to Claims that relate to veterinary work undertaken prior to the cessation of the Practice. The Practice Cessation ERP extends the cover provided under Section 2 of the Policy for a further six years.

However, if you cancel your Policy and rely upon the Practice Cessation ERP it is important to consider the implications if you later decide to start trading again. The Practice Cessation ERP within your previous Policy only operates if you have ceased trading and so you may wish to discuss your options for obtaining cover for work carried out prior to the start of any new Policy in order to maintain continuous cover and protect your original RDI. Practices that are planning to reduce their veterinary work but not cease working/trading completely can choose one of the part time options to describe the extent of the work being undertaken by the vet(s) in the Practice.

Stopping working as a vet

The Policy provides an automatic extended reporting period when a vet stops working due to death, permanent disability or permanent retirement, the DDR Extended Reporting Period. The Policy in place at the time that the vet concerned permanently stops working will continue to respond to claims for a further six years. The DDR Extended Reporting Period extends the cover provided under Section 2 of the Policy that relates to veterinary work undertaken prior to the date that the vet stopped working.

There is no need for an ERP in respect of Section 3 of the Policy as this is written on an Occurrence basis. The Policy in place at the time of the events that lead to any RCVS, VCI or criminal proceedings is the relevant policy and, subject to all terms and conditions, it is this Policy that will respond.

If in doubt, please do not hesitate to call the VDS to discuss, on +44 (0)1565 652737