Why do mortgage brokers need PI insurance?

As a mortgage broker, you provide expert advice and services that your clients depend on. If something goes wrong, a mistake, an oversight, or even a misunderstanding, your client could claim you caused them a financial loss. Professional indemnity insurance covers the legal costs of defending yourself and any compensation you might need to pay.

Common risks for mortgage brokers include unsuitable mortgage advice, affordability miscalculations. Even careful professionals face claims from misunderstandings or unrealistic client expectations. PI insurance gives you the confidence to do your best work knowing you are protected.

Regulatory requirement: FCA requires all practising mortgage brokers to hold professional indemnity insurance.

What cover level do you need?

Most mortgage brokers opt for £2M of cover. The right level depends on the size of your projects, your annual revenue, and any contractual requirements from your clients. Many enterprise clients require at least £1M of PI cover as a condition of working together.

How much does it cost?

Mortgage Broker PI insurance starts from £20/mo for £2M of cover. The exact price depends on your annual revenue, claims history, and the specific services you provide. Leo compares prices from across the market to find you the best deal.

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Frequently asked questions

Mortgage Broker PI insurance starts from £20/mo for £2M cover. Your exact price depends on revenue, claims history, and cover level.

FCA requires all practising mortgage brokers to hold professional indemnity insurance.

PI insurance for mortgage brokers covers claims arising from unsuitable mortgage advice, affordability miscalculations. It pays for legal defence costs and any compensation awarded.

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