A Challenging Marketplace
When it comes to Professional Indemnity Insurance, Financial Advisors have always faced a challenging marketplace. A high frequency of claims, mis-selling scandals, increases in the FOS Award limit, and the FCA DB Pension Transfer review have all contributed to this sector being viewed as “high risk” by insurers.
In recent years, the FCA DB Pension Transfer review brought a particularly difficult and frustrating time for firms, with additional exclusions being applied, substantial increases in premiums, the completion of lengthy and time-consuming proposal forms and questionnaires, and, in some cases, IFAs struggling to find any cover at all.
More recently, there has been some light at the end of the tunnel with premiums reducing and some exclusions being lifted. However, the highs and lows of the PI market are cyclical, and there are already new areas of concern being highlighted by insurers, such as Equity Release Mortgage work.
Choosing a Specialist Insurance Broker is Critical
In such a restricted market, choosing a Specialist Insurance Broker with experience and expertise in the IFA PI sector is critical to ensuring that you get the best possible terms and advice. The QPI team comprises risk management, legal, and insurance experts, with each advisor having 20 plus years industry experience. We view ourselves as an extension of our clients’ business, taking the time to truly understand what you do and identifying any risk gaps your business might be exposed to.
Quality, Professionalism and Integrity
We place great importance on delivering an insurance program based on our core values: quality, professionalism, and integrity. We believe that our clients’ needs should come first and not that of the insurer.
Unlike some of our competitors, we are not tied to any one provider, ensuring that we can be objective when placing your insurance. And as we are an independent Specialist Broker, with none of the overheads of the larger National firms, we can pass these cost savings on to our clients!
We can also help with Cyber, Directors and Officers and Office Insurance:
Cyber Insurance
Because of the sensitive and valuable data being held, IFAs are highly attractive to Cyber Criminals. Ransomware attacks are one of the most common types of loss seen by insurers and the impact can be devasting to a business. PI policies now exclude Cyber and Data loss as standard, so its vitally important that firms purchase a robust Cyber Liability Insurance policy.
A Cyber Liability policy can provide cover for the following:
- Breach notification costs and crisis management expenses
- Legal costs and third-party compensation payment costs in the event of a data breach
- Data recovery and system repairs
- Business Interruption – loss of income because of a data breach
- Theft of money from Cyber Crime
- Insurable penalties and fines
Directors’ and Officers’ Insurance (D&O)/Management Liability Insurance
Directors’ and Senior Executives in the UK are subject to legislation, such as The Companies Act 2006 which contains more than 200 offences. Your personal assets can be at risk should a claim be brought for alleged wrongful actions and decisions taken while running the business.
Examples could be regulatory investigations, corporate insolvency, breach or mismanagement of data, corporate manslaughter and employment related issues, such as harassment or discrimination.
Directors’ and Officers’ (D&O) Insurance reimburses directors’ and senior managers for legal defence costs, compensation payments and investigation costs and can also reimburse the entity should they pay a claim on behalf of the individual.