Loss of documents extension — UK PI

The loss-of-documents extension covers the cost of reconstructing lost or damaged client documents. Once a niche extension, it's increasingly relevant in the era of ransomware and data loss.

What the extension covers

Cost of reproducing lost or damaged client documents.

Cost of restoring damaged data.

Cost of recovering documents from off-site storage or backup.

In some wordings, includes the third-party costs where the client suffers loss.

Usually excludes ransom or extortion payments.

Common scenarios

• Fire, flood, or physical damage to document storage.
• Ransomware or malicious data destruction.
• Employee error resulting in data loss.
• Theft of physical documents.
• Corruption or accidental deletion of digital files.
• Third-party document custody failure (offsite storage).

Sub-limits and structure

Standard sub-limit £25k-£250k on most UK PI policies.

Can be increased at cost for firms with high document exposure.

Separate from the main aggregate limit in some wordings; part of it in others.

Typically each-and-every basis within the sub-limit.

Digital-era relevance

1. Legal firms with case files — loss can be catastrophic for the client.
2. Architect firms with design files, plans, and BIM models.
3. Financial advisers with client suitability records.
4. Consultants with intellectual property developed for clients.
5. Property firms with title deeds and searches.

What it doesn't cover

• The professional error that caused the loss (that's covered by main PI).
• Ransom payments (that's cyber policy).
• Business interruption caused by the loss (usually cyber or BI cover).
• Client's own consequential losses (may be separate claim under main PI).
• Loss of physical documents through wear and tear.

Frequently asked

Related

• Cyber insurance for professional firms
• Ransomware and professional firms
• GDPR ICO fines and PI implications

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