Providing life insurance and other related products is a huge industry, 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.
However, even the most diligent life insurance brokers can be at risk of making mistakes.
Thankfully, professional indemnity insurance is there to cover you for any potential mishaps that you may encounter. Here we take a better look at what professional indemnity insurance is and why your business needs it.
Why do we need professional indemnity insurance?
No life insurance broker intends to give bad advice, but unfortunately, mistakes can happen every so often.
Angry clients may decide to take legal action against your firm if something goes wrong. It’s essential that every precaution is taken to protect the financial health of your business if you make 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).
Where can we buy 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.
If your fee income is less than £ 200,000 you can also buy online using our quote and buy system. It instantly compares the premiums from some major insurers.
You may also find the following guide helpful: Why You Need An Insurance Broker.