What is Professional Indemnity Insurance (PII) for Insurance Brokers?
PII for Insurance Brokers is designed to protect such professionals from potential claims made against them by their clients. These claims often stem from perceived professional negligence, such as errors, omissions, or failures to perform their duties.
Not only is this insurance legally required for most insurance professionals, but it also provides a safety net, shielding brokers from the financial burden of a lawsuit.
What Does the Policy Cover?
The policy provides a broad scope of coverage and is designed to address both direct and less apparent risks faced. The following are key aspects often covered under a PI policy for Insurance Brokers:
- Civil Liability: The policy indemnifies brokers for any civil liability resulting from their business activities. This could be a breach of professional duties, unintentional infringement of intellectual property rights, unintentional breach of confidentiality, libel, or slander.
- Loss of Documents: The policy also covers reasonable expenses incurred in repairing, restoring, or replacing documents owned by a broker or their clients that have been lost, destroyed, or damaged.
- Mitigation of Loss: The policy covers reasonable costs and expenses incurred in taking action to avoid a larger claim.
- Ombudsman Awards: The policy covers any sum payable as a compensation award arising out of the provision of the broker’s business activities.
- Representation Costs: The policy covers costs incurred to enable representation at any regulatory enquiry or proceeding relevant to a claim covered by the policy.
- Data Protection Act Costs: The policy covers the costs of defending any action brought for alleged offences under sections of the Data Protection Act.
- Compensation for Court Attendance: The policy pays for the cost of attending court requested by the insurer.
- Prosecution Defence: The policy covers costs incurred in the defense of any criminal proceedings against a broker arising directly from alleged breach of statutory duty or regulations.
- Electronic Trading: The policy covers any claim or loss arising from the broker’s business activities transacted via the internet, social media, or other electronic means.
Custodian Management Ltd is specialized in providing insurance for Insurance Brokers. Our PI policy for Non-Lloyd’s Brokers is a comprehensive product designed to offer robust protection for these professionals where coverage can be tailored to meet specific needs.
If you have any questions regarding Professional Indemnity Insurance for Insurance Brokers please do not hesitate to get in contact! Just send email to info@custodianinsurance.co.uk or call 033 33 448 535.
