Do Financial Advisers require Professional Indemnity Insurance?

The simple answer is ‘yes’. The Financial Conduct Authority (FCA) sets out in the Interim Prudential sourcebook for Investment Businesses (IPRU-INV 13) that all personal investment firms must take out and maintain Professional Indemnity Insurance (PII) at all times. The FCA rules do not go as far as to recommend minimum terms for cover, although they do state that the policy must not be subject to conditions or exclusions which unnecessarily limit its cover, and a contract of insurance must meet the demands and needs of the firm it is being issued to. As such, your choice of insurer is key to the effectiveness of your PII.

What does PII cover a Financial Adviser for?

The purpose of the professional indemnity is to cover the firm for claims made against it by a third party primarily for professional negligence and civil liability. The policy will also cover for defence costs and expenses incurred in defending a claim. In addition the policy will also cover you for any award made against the firm by the Financial Ombudsman Service (FOS).

Where a complaint arises against your firm which becomes claim, it can be both time consuming and expensive to defend. Financial Adviser PII ensures you can maintain the smooth running of your business while knowing the defence and claim resolution is being handled by our experts.

How we make things easy:

We work directly with specialist insurance brokers who we have chosen because of their skill and expertise in this Financial Adviser PII. We believe that quality insurance advice is essential to the PII process and therefore ask that you contact one of these firms in order to access our services.

We welcome Financial Adviser firms with income from £500,000 up to £30,000,000 and those with a minimum of two years complete accounting years to access our Financial Adviser PII.

Our underwriting appetite encompasses advice in areas such as investments, pensions, employee benefits, mortgages, general insurance and others. Our preference is in holistic advice firms, however we recognise that there are many which have identified specialisms and welcome the opportunity to work with these firms also.

Our preference is to have a conversation with each firm before we make any offer of terms, this helps us understand what your firm is about and how we can work together to develop a long standing partnership based on trust.


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Product Governance & FVA

We are experienced risk advisors and insurance practitioners, and we focus on niche areas of insurance and risk transfer, where we have built up a strong technical knowledge supporting demands that are routinely complex and wide ranging.

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