Protecting Your Business with Professional Indemnity Insurance for Finance Brokers

Professional indemnity insurance is a must-have for finance brokers, as it protects them from potential lawsuits and financial losses due to errors or omissions in their work.

In Australia, for example, finance brokers are required by law to have professional indemnity insurance to operate their businesses.

This type of insurance can help finance brokers recover from financial losses resulting from claims made against them.

A typical professional indemnity insurance policy for finance brokers may have a minimum coverage limit of $500,000, as seen in some Australian policies.

To get the right level of protection, you'll need a professional indemnity insurance policy with a minimum of $2 million coverage. This is a requirement for membership with the Mortgage & Finance Association of Australia.

The MFAA also requires professionals to have at least 12 months run-off coverage, which means they'll be protected even after their policy has expired.

As a finance broker, it's essential to understand the types of insurance coverage you need to protect your business. You'll likely be required by law to have professional indemnity insurance, which can help protect you from claims made against the advice and services you provide.

Professional indemnity insurance can cover up to $10 million, and it's also a requirement for MFAA membership. You'll need to have at least 12 months of PI 'run-off' cover, which ensures you're protected even after you leave the industry.

Here are the key types of coverage you can expect from professional indemnity insurance:

Remember, public liability insurance can also be an optional extension to your professional indemnity insurance, providing additional protection against third-party claims.

As a mortgage broker, you're likely required by law to have professional indemnity insurance, which can help protect you from claims made against the advice and services you provide.

This type of insurance can cover you against a range of claims, including privacy and breaches, false or misleading advice, errors and omissions, and loss or theft of records.

Professional indemnity insurance can be arranged by your employer or aggregator, or you can purchase it yourself through an insurer or insurance broking organisation.

You may also need to consider public liability insurance, which can help protect your business against third-party claims resulting from accidents or injuries that occur as a result of your business activities.

The cost of professional indemnity insurance can vary, but it can cover up to $10 million. Public liability insurance, on the other hand, can cover up to $20 million.

Here are some key things to consider when it comes to professional indemnity insurance:

It's essential to note that professional indemnity insurance is on a 'claims made' basis, which means you need to be holding a policy when a claim is made. To overcome this, you can take out 'run-off' cover, which is an MFAA policy that all full members should have at least 12 months of.

If you need a certificate of currency, it's actually quite straightforward. Once your insurance cover has been successfully purchased, you can get one issued.

To request a certificate of currency, simply get in touch with the insurance company. Existing customers can do this to get their certificate of currency, policy wording, or tax invoice.

Choosing a broker for professional indemnity insurance can be a game-changer for finance brokers. An experienced broker will navigate the complex world of insurance products, coverages, and policy terminology, saving you time and effort.

They'll spot your unique set of risks and match you to the right choice, ensuring you get the coverage you need. This is especially important in the finance industry, where risks can be high and complex.

A broker will also advocate for you on price, helping you get the best deal possible. This can be a huge cost-saver, especially for small to medium-sized finance brokerages.

We help take the load off by managing, negotiating, and settling claims with insurers on your behalf.

Handling an insurance claim can be overwhelming, especially when your time is stretched thin running your business.

Managing an insurance claim can be a daunting task, especially when you're already stretched thin running your business.

Claims support can help take the load off, allowing you to focus on what matters most. We help manage, negotiate, and settle claims with insurers on your behalf, making the process smoother and less overwhelming.

Handling a claim can be a complex and time-consuming process, but with the right support, you can get back to business as usual.

When dealing with claims and support, it's essential to have the right forms and documents in order. You can find the necessary documents on the Mortgage and Finance Association of Australia website.

The financial services guide (FSG) and policy wording (PDS) are crucial documents that you'll need to refer to. These documents provide a comprehensive overview of your insurance requirements.

If you want to know the full scope of insurance requirements, I recommend checking out the Mortgage and Finance Association of Australia website: mfaa.com.au/key-requirements.

Here are the key documents you'll need to get started: