Mortgage Brokers Professional Indemnity Insurance – all you need to know
Millennium offers FSA compliant Mortgage Brokers PII quote and placing service exclusively for mortgage brokers, We can include all your FSA regulated mortgage general and pure protection activities. Non FSA regulated activities may be included on receipt of full written details Immediate quotes from a panel of specialist PII providers Cover available for Individual Directly Authorised firms and Network Principals PII Run off cover available Premiums can be paid by monthly instalments
FSA website: Mortgage & General Insurance PII requirements
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Cover
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FSA Requirements
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Minimum Indemnity Limit (Any One Claim)
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a) Mortgage mediation £100,000 or 10% of annual income
b) General Insurance mediation €1,120,000 any one claim
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Aggregate Indemnity Limit
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a) Mortgage Mediation £500,000 or 10% of annual income
b) Insurance mediation €1,680,300 or 10% of annual income if higher
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Max Upper Limit
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Mortgage mediation £1 million - Insurance Mediation £30 million
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Maximum permitted Excess
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a) Mortgage mediation: £2,500 or, if higher: 1.5% of annual income if not holding client money
b) Insurance mediation or mortgage intermediary holding client money or title documents: £5,000 or if higher: 3% of annual income
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CML Arbitration & FOS Awards
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If a firm seeks to have an excess which is higher than the relevant limit, it must hold additional capital as calculated in accordance with a table provided by the FSA
The rule on the items which are eligible to contribute to the capital resources of a firm applies - see MIPRU 4.4.2 R
The minimum limits of indemnity for a firm whose permissions covers both insurance and 2home finance activities is the higher of the limits of indemnity for these activities
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Breach of Confidentiality & Infringement of copyright
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Optional for additional premium
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Loss of Documents
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Included
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Dishonesty of Employees
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Included or via separate Fidelity Insurance
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Who is covered?
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All employees, partners, directors self employed individuals and appointed representatives
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Evidence of cover
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Requested by FSA annually in renewal subscription and GABRIEL returns Policies that provide cover to more than one firm (1) the limits of indemnity must be calculated on the combined annual income of all the firms named in the policy; and (2) each firm named in the policy must have the benefit of the relevant minimum limits of indemnity.
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Contact Details