Statement Of Guidance On Professional Indemnity Insurance

A new Statement of Guidance ("Guidance") was recently issued by the Cayman Islands Monetary Authority ("CIMA") which sets out their minimum standards in relation to professional indemnity ("PI") insurance coverage (i.e. for legal costs and claims by third parties for damages arising from acts, omissions or breaches of professional duty) to be maintained by Cayman Islands licensees when conducting regulated activities.¹

Application

The Guidance applies to the following licensees ("Licensees"): Trust Companies; Insurance Brokers, Insurance Managers and Insurance Agents; Mutual Fund Administrators;² Securities Investment Businesses; Corporate Service Providers and Company Managers; and Corporate and Professional Directors.