Marsh, the world's leading insurance broker and risk adviser, is warning UK financial services and legal firms to establish whether there is potential cover for losses or claims arising in the wake of alleged 'Ponzi', or pyramid selling, schemes.

Insurance policies that might respond to claims arising from Ponzi schemes include professional indemnity, directors' and officers' liability, errors and omissions, civil liability, crime, fidelity and bond covers as investors and shareholders contemplate suing their advisers to recover losses. Even if a claim is completely defensible and no liability ultimately arises, companies might still have to pay for their own defence costs and, depending on the wording of their policy, those defence costs might be payable by insurers.

Janet Lambrou, Senior Claims Advocate for the Financial and Professional Practice at Marsh, explained: "When investors lose money they look for someone to blame and a deep pocket from which to recover. Claims and class actions have already been issued against financial institutions, funds and investment advisers. More claims are highly likely in the coming months."

In response to this growing threat of claims, Marsh has launched a new claims service to help professional services firms and financial institutions manage these types of claims. The team will provide guidance to insureds through the claims process, including policy interpretation advice from specialist claims advocates, calculation of the claim by forensic accountants in accordance with the policy terms, presentation of the claim to insurers and obtaining claim payments or negotiating settlements where required. The service is a collaboration between the Claims Advocacy Unit of Marsh's Financial and Professional Practice and the Forensic Accounting and Claims Services (FACS) team in the UK.

Caroline Woolley, Head of Forensic Accountancy within FACS, said: "Effective claims management begins before the claim actually takes place. A fully supported correct calculation of loss is key to maximum insurance recovery. Compliance with policy terms and conditions is imperative to avoid jeopardising cover for valid claims. Teamwork and good communication within the firm, with claims handlers and the insurers is critical to a successful resolution."