As a mortgage firm, you play a pivotal role in guiding clients through one of the most significant financial decisions of their lives. With such responsibility, it’s important you are fully covered for the complex work you do. Professional indemnity (PI) insurance is your safety net, designed to protect you and give you the confidence you need to do your work. To ensure you’re getting the most out of your PI insurance and safeguarding your business effectively, we’ve provided some essential advice to help you manage your policy in the best possible way. Making PI insurance work for you 1. Assess your risks thoroughly: • Take the time to carefully evaluate the specific risks associated with your mortgage firm activities. This includes potential legal claims, financial advice errors, and compliance issues. • Consider the size and scope of your business, the complexity of the mortgage products you handle, and the profile of your client base. 2. Choose the right coverage level: • Ensure your PI insurance coverage is adequate to cover potential claim - underinsurance is more common than you might think and can lead to significant out-of-pocket expenses, which can be avoided with the right level of cover. • Evaluate the policy limits and make sure they align with the potential financial exposure of your business. 3. Review policy exclusions: • Scrutinise the exclusions in your policy to understand what is not covered. Common exclusions may include certain types of financial advice or claims arising from intentional misconduct. • Discuss any unclear exclusions with your broker to avoid surprises when filing a claim. 4. Regularly update your policy: • As your business grows or changes, it’s so important to update your PI insurance to reflect new risks and increased business activity so that you remain fully protected. • When you’re busy with the day-to-day running your practice, it’s easy to put aside your PI until renewal. However, regular reviews ensure your coverage keeps pace with your evolving business needs, helping to make sure you don’t get caught short should you ever need to make a claim. 5. Understand the claims process: • No matter how good you are at your job, mistakes can occur, despite your best efforts. Make sure you familiarise yourself with the procedure for making a claim. Knowing the steps can make all the difference in helping to expedite the process and improve the chances of a successful claim. Top Tips for Managing Professional Indemnity Insurance: A Guide for Mortgage Firms 08 SUMMER MORTGAGE NEWSLETTER Jacqueline Buss Head of Office for Bristol Enterprise Marsh Commercial
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