PI claim disputes · UK
What happens when your PI insurer disputes a claim
Reviewed by Apex Insurance Brokers (FCA FRN 724952) · Published 15 July 2026
Coverage disputes with PI insurers are relatively rare but material when they occur. What triggers them, how they progress, and what firms can do to resolve them.
Common reasons insurers dispute claims
- Non-disclosure or misrepresentation at placement (Insurance Act 2015).
- Notification failures — particularly late notification of circumstances.
- Aggregation clause disputes on multi-claim scenarios.
- Contractual liability exceeding civil liability at law.
- Fraudulent claims (s.12 Insurance Act 2015).
- Retroactive-date exclusions on historic work.
Stages of a dispute
- Initial insurer position — usually via panel solicitor.
- Broker mediation — often resolves at this stage.
- Formal dispute correspondence.
- Alternative dispute resolution (mediation) where relevant.
- Court proceedings if unresolved.
- Sometimes FOS jurisdiction for consumer/small business.
The s.13A late-payment framework
Insurance Act 2015 s.13A creates a right to damages for late payment.
Insurer's 'reasonable grounds to dispute' defence is common.
Documented insurer delays that harm the firm's business qualify for damages.
See our reasonable-grounds defence page.
What firms should do during a dispute
- Get the broker fully engaged — disputes rarely settle well without broker mediation.
- Preserve all correspondence and file.
- Consider independent legal counsel where insurer's position is aggressive.
- Document the business impact of any delay.
- Approach FOS for small-business jurisdiction where applicable.
- Consider s.13A damages claim where insurer's conduct is unreasonable.
Frequently asked
How often do disputes happen?
Rare — the vast majority of PI claims resolve without formal dispute. But when they occur, they're material.
Can insurers withdraw cover after a claim?
Only in limited circumstances — typically fraud (s.12) or material non-disclosure. Not simply because a claim is expensive.
What's my recourse against a disputed decision?
Broker mediation first; then court proceedings, potentially FOS for smaller commercial customers.
Does going to court affect renewal?
Yes — insurers rate disputed history. Sometimes higher; sometimes hard to place.
How long do disputes take?
Simple disputes: weeks. Complex disputes with proceedings: 1-3 years.
Can I claim damages for unreasonable delay?
Under Insurance Act 2015 s.13A, yes — but the 'reasonable grounds to dispute' defence is often successful for insurers.
Related
- Coverage disputes UK PI insurance
- Insurance Act 2015 s.13A defence
- PI claim investigation what to expect
Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Firm reference number 724952. Registered in England and Wales, company number 07014570.
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