Leo compares the UK market and shows you PI policies side by side for mortgage brokers. £2M cover, instant activation.
Professional indemnity insurance protects you and your business against the costs of claims made by clients who have suffered loss due to your professional advice or work. For mortgage brokers, this is particularly important as a single mistake or oversight can result in significant financial liability.
The main risks mortgage brokers face include: unsuitable mortgage advice, rate comparison errors, missed deadlines
Regulatory requirement: FCA requires all practising mortgage brokers to hold professional indemnity insurance.
The amount of professional indemnity insurance cover you need depends on the size of your business, the types of clients you work with, and the potential value of claims. Most mortgage brokers opt for cover between £500,000 and £2 million.
The right level of cover depends on the size of your projects, your annual revenue, and any contractual requirements from your clients. Leo's comparison tool can help you explore different cover levels and see how they affect your premium.
The cost of professional indemnity insurance for mortgage brokers varies depending on:
As a guide, mortgage brokers typically pay from £20 per month for professional indemnity insurance.
Compare PI insurance in 60 secondsYou recommend a mortgage product unsuitable for the client's circumstances, affordability, or long-term financial plan, resulting in financial hardship or default.
You fail to advise on important mortgage features, penalties, or product limitations, leading the client to experience unexpected costs or problems.
You miss critical application deadlines or fail to properly manage the mortgage application process, causing the deal to fall through.
You fail to disclose conflicts of interest or receive undisclosed commission, exposing your client to unfair charges or unsuitable recommendations.
Professional indemnity insurance for Mortgage Broker typically covers:
FCA-regulated mortgage brokers must hold professional indemnity insurance meeting specific FCA requirements. Cover typically ranges from £250K-£500K depending on business scale and client numbers. Your policy must comply with FCA minimum requirements and cover all mortgage advisory services you provide. Ensure your policy covers breach of FCA/ICOBS requirements and includes cover for unsuitable recommendations. Fee-paying brokers handling significant volumes should consider enhanced cover.
Approximately 8% of mortgage brokers have faced a professional indemnity claim. The average claim is valued at £32,000. Unsuitable mortgage recommendations account for 44% of claims, whilst failure to disclose conflicts represents 28% of claims. Application management failures account for 18% of claims.