Section 27 Indemnity Insurance

Peace of mind for executors and beneficiaries:

  • Finance Available * See Below
  • The policy provides cover forever against the risk of an unknown creditor coming forward.
  • Distribute the estate with protection against future claims made against the estate from creditors
  • Insure with or without a Section 27 notice
  • Beneficiaries can receive their money quicker with peace of mind they won't need to repay future claims from creditors.
Section 27 Indemnity Insurance

A key insurance cover for executors, personal representatives and beneficiaries

What we do

We make it easy for executors or administrators to arrange Section 27 Indemnity Insurance online.

Getting a Quote

Complete our enquiry form and we will obtain a quotation for you from our insurer partner.

Supporting You

We can support you via online chat between 9am to 5pm (Mon- Sat). Alternatively please contact us

What's on this page

On this page you will find a lot of useful information to help you arrange Section 27 Indemnity Insurance in the UK.

If you already know what insurance you need, you can click 'Get a Quote'.

We will use the information you provide to obtain a quotation from our underwriting partner, CLS Property Insights, who underwrite Section 27 Indemnity Insurance on behalf of Great Lakes Insurance SE.

If you have questions on the cover you should find they are answered on this page. If not, start a chat or contact us.

You can click on any of the items in 'Contents' to jump to the section that interests you.

Contents

What is a Section 27 Notice?

A Section 27 notice is a legal advertisement that informs creditors that a person has died and that their estate is about to be distributed. The purpose of this notice is to give creditors two months to come forward and make a claim against the estate before the funds are distributed to the beneficiaries.

If a Section 27 notice is not taken out, and a creditor comes forward after the estate has been distributed, they may be able to hold the executor or administrator personally liable for the debt. However, if a Section 27 notice is taken out, creditors can only claim the debt from the beneficiaries.

It is important to note that creditors are still entitled to come forward after the estate has been distributed, even if a Section 27 notice was taken out. However, they will only be able to claim the debt from the beneficiaries, not the executor or administrator.

You can find out more or apply for a Section 27 notice on our Section 27 page.

The benefits of taking out a Section 27 notice

  • The policy provides cover forever.
  • It protects the executor and personal representatives from being held personally liable for debts that are not claimed within the two-month period.
  • It gives creditors a fair opportunity to make a claim against the estate.

The risks of placing a Section 27 Notice without Insurance:

  • Creditors can still make a claim even if a Section 27 notice has been placed. Whilst the executors and personal representatives are covered with a Section 27 notice, the beneficiaries are not.
  • The creditors can claim the debt from the beneficiaries. This may cause financial hardship to the beneficiaries as they may not have the funds to repay the money.

What is Section 27 Indemnity Insurance?

Section 27 indemnity insurance covers the legal liability of executors, personal representatives, and beneficiaries from claims by unknown creditors to the estate.

This means that if an unknown creditor comes forward after the estate has been distributed, the insurance will cover the costs of defending the claim and pay any sums that are awarded to the creditor.

The insurance can be purchased with or without a Section 27 notice.

The executors or personal representatives should however still consider obtaining a credit report against the estate.  This will help highlight any known issues prior to distribution.

Insurance cover can still be requested without a credit report, but the insurance cost may be higher.

What are the benefits of Section 27 Indemnity Insurance?

  • Section 27 Insurance provides protection for the executor and beneficiaries from personal liability, resulting from unknown creditors coming forward after the estate is distributed. This is a risk even after a statutory notice has been placed.
  • There is no need to wait for the two-month window to pass before the estate can be distributed.
  • Your legal advisors can close their file earlier, which may also reduce your legal costs.
  • Beneficiaries can receive their money quicker with peace of mind they won't need to repay money following future creditor claims.
  • Section 27 Insurance can help to reduce the overall cost of administering an estate by removing the need to place a statutory notice in the newspaper. This can save the executor or administrator hundreds of pounds in fees, as well as the time and effort involved in placing the notice

What are the costs of No Section 27 Insurance?

The cost of our Section 27 Indemnity Insurance can be as low as £89.60 including Insurance Premium Tax.  The cost will vary depending on the size of the estate and the potential for unknown creditors to come forward.

However, it is usually very cost-effective when compared to not having the insurance.  Without it you will have the additional costs of advertising in local papers and the delays in distributing the estate. Not to mention the costs of future claims from creditors.

You can reduce the cost of Section 27 Indemnity insurance by arranging for a credit and liabilities search to identify any unknown creditors.

Arranging Finance to pay for this insurance

If there aren’t the funds in the estate to pay for the insurance protection upfront, you and the beneficiaries don’t need to worry.

Insuristic customers can fund the cost of any of our Probate Insurance Policies with our partner, FSL Finance.

The loan is simple to arrange, with 90% of applications being accepted immediately.

There are no arrangement fees or early repayment charges. 

Once a loan is approved, the money is paid to Insuristic to finance your insurance policies.  You will then need to pay FSL Finance a monthly amount until the loan is repaid.

If you need cover before the loan is repaid, we can help you.  Instructions of what to do in this scenario will be provided in your quotation.

You can find out more or to start on application on our Probate Loans page.

 

What is insured on a Section 27 Indemnity Insurance?

  • If the Claimant (i.e. a creditor) is owed money from the Estate, but the Estate has been distributed without knowing about the Claimant's debt, then the Claimant can claim any shortfall from the Insurer;
  • Any defence costs
  • Any other costs and expenses you incur with the Insurer’s written consent because of an Insured Risk

What is not insured on a Section 27 Insurance Policy?

The Insurer can refuse to pay a loss or reduce any payment for the loss because:
  • Of a loss arising from any matter which the insured party was aware of at the Inception Date; and/or
  • Non UK assets; and/or
  • The insured party confirming a statement of fact to us which the insured knew or could reasonably have been expected to know was not true; and/or
  • The insured party makes a claim knowing that it is false or fraudulent; and/or
  • The insured party discloses this policy exists to another person.

Cover restrictions to be aware of

Here are some conditions you need to be aware of when buying Section 27 insurance.

The insured party will not, without the written consent of the Insurer:
  • Disclose the existence of this policy, other than to respective Legal representatives;
  • Communicate on any matter regarding an insured risk with any party who, it is reasonable to believe, may have an interest in enforcing an insured risk;
  • Any Additional Condition contained in an Insured Risk Appendix attached to your Policy.

Making a Claim

If you make a claim on Section 27 Indemnity Insurance you must adhere to all the claims conditions listed in the policy.

Failure to do this could mean the insurer rejects your claim, or they could reduce the value policy pays out, if the breach of conditions increases the value of the loss.

You should ensure you read and understand all of the policy conditions listed in the policy.

Here are some pointers on what you should do in the event of a claim:

  1. You should never tell a third party about the existence of this policy.

  2. If there are any circumstances that might cause a claim, you must tell the insurer in writing as soon as possible. You should also provide the insurer with as much information and documentation as you can.

  3. Don't incur any costs relating to a claim without first consulting your insurer

  4. Never admit liability or offer to pay or settle with someone else. You should refer the matter to your insurers claims team.

  5. Pass all correspondence and requests for meetings to your insurers claims team.

For full details of your claims conditions you must read your policy wording or speak to the insurers claims team for guidance.

Frequently Asked Questions

Why not try Insuristic for a Section 27 Indemnity Insurance Quote?

Other Probate Insurance Pages

You can find out more about our products on the following pages. You can also click the 'Get a Quote' button on each page to get a quote in a couple of minutes.

About the Author

Rob Faulkner CEO of Insuristic

Hi, I'm Rob, CEO and Founder of Insuristic. My mission is to make insurance easier to understand and buy online.

I hold an Advanced Diploma in Insurance (ACII) which demonstrates I have a solid technical understanding of Insurance and have committed to continuous professional development. I am also a member of the Chartered Insurance Institute and hold the a Chartered Insurance Broker status.

Over the last 27 years, I have worked for insurers, insurance brokers and insurance technology businesses, specialising in product, sales and marketing.

You can find out more about me on my author page.

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