Insurance Brokers Insurance
Protect your insurance brokerage from advisory claims, regulatory complaints and E and O disputes with specialist broker cover.
Get in touchWhat is insurance brokers insurance?
Insurance Brokers insurance is a specialist policy designed to protect finance and property professionals from the risks of advising clients, managing transactions and handling sensitive financial data. It typically includes professional indemnity, public liability and cyber liability.
Working in finance and property involves significant professional liability. Incorrect valuations, compliance failures and advisory errors can lead to substantial claims from clients, lenders and regulators.
Find cover options from specialist insurers who specialise in covering finance and property businesses, so your cover reflects the specific risks and regulatory requirements of your profession.
Professional Indemnity
Covers claims arising from incorrect policy placement, coverage gaps or advisory errors.
Public Liability
Covers injury or property damage claims from clients visiting your office.
Cyber Liability
Covers data breaches involving client insurance and financial information.
Employers Liability
Required by law if you employ anyone, covering employee injury or illness claims.
Who needs insurance brokers insurance?
General insurance brokers
Arranging commercial and personal insurance for clients
Specialist brokers
Focusing on a specific sector such as marine, aviation or construction
Wholesale brokers
Placing risks in the London market on behalf of retail brokers
Lloyd's brokers
Accessing the Lloyd's of London market for specialist risks
FCA authorisation and insurance broker regulation
Insurance brokers must be FCA-authorised to arrange insurance on behalf of clients. Authorisation is a legal requirement, and the FCA mandates professional indemnity insurance with minimum cover of at least 60% of annual turnover (floor £2 million). Brokers are subject to ICOBS rules and must provide clear consumer information, including details of their services, charges, and conflicts of interest.
Brokers may also be bound by sectoral requirements. Mortgage brokers arranging mortgages alongside insurance must comply with mortgage-specific authorisation and insurance rules. Travel insurance brokers have specific consumer protection rules. Insurance brokers handling claims on behalf of clients must maintain trust accounting and client money protections.
Professional indemnity insurance for brokers covers failures to advise of suitable products, misrepresentation of cover terms, failures to obtain adequate insurance limits, and breaches of FCA rules. Brokers are also liable if they fail to arrange cover as instructed by a client, and claims can exceed the original insurance premium by substantial amounts.
How much does insurance brokers insurance cost?
£900 – £2,000 per year for independent insurance brokers; brokers with larger client books and higher premiums under management may pay £2,500 – £6,000+
Real claims: what insurance brokers insurance covers
An insurance broker recommended business insurance cover without adequately assessing the client's actual risks. Key covers including cyber liability and professional indemnity were excluded. When the client suffered a data breach, the costs were not covered, resulting in a loss of £45,000.
Professional indemnity covered the settlement and legal costs. The client recovered compensation for the uninsured losses that should have been covered.
£47,200 total — £42,000 settlement for uninsured loss, £3,600 legal fees, and £1,600 FCA complaint handling costs
An insurance broker failed to arrange the correct insurance limit for a client's business. When a loss occurred, the policy payout fell short of the client's actual losses. The client sued the broker for the shortfall of £28,000.
Professional indemnity covered the claim and the cost of legal defence and settlement negotiation.
£30,100 total — £28,000 shortfall settlement, £1,500 legal fees, and £600 administrative costs
An insurance broker arranged home insurance for a client but failed to disclose that specific fixtures (such as a wood-burning stove) required declaration and would not be covered without explicit authorisation. The client suffered a loss related to the undisclosed fixture, and the insurer refused to pay.
Professional indemnity covered the settlement as the broker failed to obtain full disclosure from the client and did not clearly explain cover limitations.
£18,400 total — £16,000 loss settlement, £1,800 legal fees, and £600 expert adviser fees
WHY CECIL
Built differently.
Cover for insurance brokers risks
Finance and property work carries significant professional liability. Cecil finds insurers who cover insurance brokers specifically and understand the regulatory environment.
Regulatory compliance support
Professional indemnity covers the costs of defending regulatory complaints and investigations. Cecil ensures this is included in your policy.
Cyber protection for financial data
Insurance Brokers handle sensitive client data. Cecil makes sure your policy includes cyber liability to protect against breaches and their consequences.
Competitive quotes from specialist insurers
Get your cover options from finance and property insurance specialists. Cover that reflects your profession, not a generic commercial policy.
Common questions about insurance brokers insurance
Do insurance brokers need professional indemnity insurance?
Professional indemnity is essential for finance and property professionals. It protects you if a client claims your advice or work caused them a financial loss.
What level of professional indemnity do insurance brokers need?
Cover levels depend on your regulatory requirements and the value of transactions you handle. Cecil helps you choose the right level for your profession.
Do insurance brokers need cyber insurance?
Given the volume of sensitive data handled by finance and property professionals, cyber liability is strongly recommended. It covers breach notification, investigation and regulatory fines.
Does insurance brokers insurance cover regulatory complaints?
Yes, professional indemnity covers the costs of defending complaints from regulators, ombudsmen and professional bodies.
Do insurance brokers need public liability insurance?
If clients visit your office or you visit properties and sites, public liability covers injury and property damage claims. Many clients require it.
Is professional indemnity insurance a legal requirement for insurance brokers?
Yes. The FCA requires all authorised insurance brokers to hold professional indemnity insurance with minimum cover of at least 60% of annual turnover. This is a condition of FCA authorisation and must be in place before you can legally arrange insurance for clients.
What does professional indemnity insurance cover for insurance brokers?
It covers claims arising from recommending unsuitable insurance, failing to arrange cover as instructed, misrepresenting cover terms, and breaches of FCA rules. It also covers claims from clients whose losses are not covered because the broker obtained inadequate insurance limits.
Do insurance brokers face liability if an insurer refuses to pay a claim?
If the claim is outside the scope of the broker's arranged cover due to the broker's error or misrepresentation, professional indemnity covers the claim. However, if the insurance policy is correctly arranged and the insurer legitimately refuses to pay (for example, due to non-disclosure by the client), the broker has no liability.
What if an insurance broker arranges cover but the client requests claims handling too?
Brokers arranging insurance are liable for ensuring the client receives a suitable product. If you also handle claims on the client's behalf, you have additional duties to advise the client promptly of cover terms, exclusions, and claim deadlines. Professional indemnity covers failures in claims handling.
Do insurance brokers need specific insurance for holding client money?
Brokers who hold client money (for example, to pay premiums) must have specific client money protections in place. This is typically covered by professional indemnity insurance with additional clauses for misappropriation, but discuss this specifically with your insurer, particularly if you hold significant sums.
Interested in Insurance Brokers insurance?
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