Professional Indemnity Insurance for Life Insurance Brokers
Since 2011 we have been arranging professional indemnity insurance for Life Insurance Brokers and other financial professionals. Whether you are an established firm or a new-start, we have a specialist knowledge of the professional indemnity insurance requirements for Life Insurance Brokers and will help you find the best Insurer for your business.
We arrange professional indemnity insurance protection for a wide range of services in the life insurance sector. As well as ensuring your premium is competitive, our expertise will underpin your professional indemnity insurance cover and strengthen the protection of your business. Our specialist service includes:
- Competitive premiums
- Fast service
- No telesales people, just insurance experts
- FCA compliant cover
- Tailored insurance cover
- Claims support and management
What's covered by professional indemnity insurance for life insurance brokers
Policy wordings vary, but professional indemnity insurance covers civil liability for mistakes in your professional services, paying for defence costs and any damages or settlements you are legally liable to pay within the policy terms and conditions. It is a regulatory requirement of the FCA and cover will normally include :
- Cover for the financial compensation you have to pay if you made an error, omission or gave negligent advice in the course of your professional services.
- Your legal defence costs including solicitors, counsel, experts and court fees.
- Cover for breach of professional duty or unintentional breach of contract where this leads to a claim for financial loss against you.
Specific risk exposures for life insurance brokers
- Recommending unsuitable policies such as incorrect sum assured, inappropriate product type or unsuitable beneficiary arrangements leading to under‑insurance or denied claims for dependants.
- Administrative or advice errors such as mis-recording client information, failure to pass on material facts to an insurer, missing policy renewals or reviews which then prejudice a claim.
- Failure to explain key features, charges, exclusions or review requirements, where a client later alleges they would have chosen differently if properly informed.
The right choice of policy
Professional indemnity insurance covering life insurance brokers is a complex area, so making the right choices is essential if you want to secure the best premium and more importantly, the correct policy for your type of business.
Providing life insurance and other related products carries risk and it is a legal requirement to have professional indemnity insurance to work in this area. Alongside life insurance, brokers also tend to sell other products such as life assurance, critical illness cover, private medical insurance, mortgage protection, whole of life cover, and income protection.
It can be a delicate and complex topic, and an insurance broker is rightly expected to be an expert in what cover is needed, and more often than not you will be.
Why you need professional indemnity insurance
No life insurance broker intends to give bad advice, but unfortunately, mistakes can happen every so often.
Clients who suffer a financial loss due to the brokers negligence may decide to take legal action against the firm if something goes wrong. It’s essential that every precaution is taken to protect the financial health of the business in case of costly errors. A professional indemnity insurance policy helps to ensure that you are covered for any legal expenses that you may have to deal with (which can run into thousands of pounds).
Buying professional indemnity insurance
Most firms use an insurance broker to organise their PI insurance - a good broker lowers the premium cost as well as providing valuable advice and support throughout the insurance period, especially on claims. We provide a full broker service, so for a quotation or some free advice please contact us. You should find the following guide helpful: Why You Need An Insurance Broker.
This guidance note is intended for information purposes only. Whilst all care has been taken to ensure the accuracy at the time of writing, it is not a reliable substitute for specific insurance advice. For advice about this topic, please contact us or your current brokers. This guidance note shall not be reproduced in any form without our prior permission. © Professional Indemnity Insurance Brokers Ltd