Since the beginning of 2005, the Financial Conduct Authority has set out a number of regulations that affect firms that transact insurance business, as a secondary activity, to their customers.
Known as Second Tier Intermediaries, these organisations include Motor Traders, who sell insurance policies to their customers in addition to their main products or services.
Does my client’s business need PI Insurance?
If your client offers insurance policies to their own customers as a Second Tier Intermediary, then they must have Professional Indemnity coverage if they are regulated by the Financial Conduct Authority.
Many motor trade Professional Indemnity policies do not include this coverage, which means your clients can be exposed if they sell GAP, Warranties, MOT, Breakdown Recovery, Private Motor or any other regulated insurance product.
Professional Indemnity insurance is important for these types of businesses as it provides additional financial resources to help pay justified claims, which can mount up depending on the success of the Second Tier Intermediaries’ business.
Safeonline PI Insurance
Safeonline offers Second Tier Intermediary Professional Indemnity insurance on a claims made basis for any breach of duty and/or fiduciary duty caused by negligence whilst your client is conducting insurance mediation activities as an intermediary or operating a scheme granted by a product provider.
A Euro indemnity limit is provided in order to meet the minimum FCA requirements in accordance with the FCA Handbook and the European Union’s Mediation Directive.
The standard Excess is £1,000 each claim/each claimant.
The policy is underwritten by the China Re. syndicate at Lloyd’s who are rated A+ (Strong) by Standard & Poor’s and A (Excellent) by A.M. Best.
Online quote and bind platform
Safeonline provide a comprehensive online platform for producing brokers on which they can obtain instant quotes, bind coverage, receive full policy documentation and manage renewals.
Safeonline only sells its products through its network of retail brokers and not directly to the Insured.
Premiums start from as little as £300 per annum excluding Insurance Premium Tax.
Want to know more?
For further product information, a copy of the full policy wording or access to our online platform:
e: firstname.lastname@example.org t: 020 7954 4400