FPA ‘broker panel’ to enhance PI cover support
Jo-Anne Bloch
The Financial Planning Association (FPA) has established a professional indemnity (PI) insurance broker panel to enhance the level of PI insurance support it offers members.
The ‘FPA Broker Panel’ comprises representatives of three leading insurance brokers — AON, Indemnity Corporation and Mega Capital — although it may be expanded in size at a later date.
It is intended to encourage increased discussion on PI issues, and will be available to respond to member enquiries and also to assist in finding the best policy for their needs.
The decision to establish the panel arose from concerns among some FPA members that insurers were “imposing unreasonable conditions on their policies”, according to FPA chief executive Jo-Anne Bloch.
“FPA members have experienced a worrying trend where brokers have expanded exclusions to PI policies,” she said.
“This is a major concern, particularly when these exclusions relate to specific requirements for FPA membership. Not only are members exposing themselves to claims risk, they are also jeopardising their professional membership.”
Common exclusions from PI policies include ‘run off’ cover, ‘fidelity’, the non disclosure of commissions and claims arising out of the use of non-approved products.
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