Independent Financial Advisors Insurance

A Financial Advisors Insurance policy includes Professional Indemnity Insurance to cover your professional risks, and can include additional insurance policies to cover your business-related risks.

Why IFAs choose Jensten for their Financial Advisers Insurance?

Independent financial advisers are exposed to risks while offering their services on a range of financial issues, and depending on the type of services offered, can find it difficult to obtain Professional Indemnity Insurance.

Our Financial Professions team have been working with IFAs for many years and can help you understand the landscape of your professional risk. The categories are low, medium and high-risk and are often aligned to the perceived risk of the service you offer. For example, medium-risk services could include estate planning and pensions, whilst high-risk activities could be Corporate Financial or dealing with high-net-worth individuals.

Professional Indemnity Insurance included within Financial Adviser Insurance continues to be challenging as a result of expensive allegations across the industry and the FCA’s decision to increase the Financial Ombudsman Service (FOS) award limit.

Ensure your firm continues to purchase the most appropriate and cost-effective Professional Indemnity Insurance.

Need Independent Financial Advisors Insurance?

For comprehensive Independent Financial Advisors Insurance

What does Independent Financial Advisors Insurance cover?

Cover can include:

Business Travel and Personal Accident Insurance

Business travel and personal accident insurance can cover unexpected travel expenses, business equipment and medical expenses if you or an employee are permanently injured or killed in an accident.

Cyber Insurance

A cyber insurance policy helps pay for financial losses they may incur in the event of a cyberattack or data breach. It can cover costs related to the remediation process, such as paying for the investigation, crisis communication, legal services, and refunds to customers.

Directors’ and Officers’ Insurance

D&O insurance reimburses the defense costs incurred by board members, managers, and employees in defending against claims made by shareholders or third parties for alleged wrongdoing. D&O insurance also covers monetary damages, settlements, and awards resulting from such claims.

Employers’ Liability Insurance (EL insurance)

EL – is a legal requirement if you have any staff, full-time, part-time or contracted. EL insurance protects employers’ from compensation claims from their employees should a claim be made against them for loss or injury at work. Your policy must have a minimum of £5m cover, with £10m being the industry standard.

Fidelity Insurance

Fidelity insurance covers losses sustained by the employer as a result of an act of forgery, fraud or dishonesty from an employee.

Management Liability Insurance

Management liability insurance covers your business & people: directors & officers insurance, employment practice liability & corporate legal liability.

Motor Fleet Insurance

Motor Fleet Insurance protects businesses from compensation claims from third parties as a result of a motor accident. These third party claims could be in the form of financial compensation for injury or property damage for a third party.

Office Insurance

Office insurance may include cover for structural faults, damage or loss to office furniture and property, plus public and employer liability.

Pension Liability Insurance

Pension trustee liability (PTL) insurance policies protect trustees and schemes against third-party claims alleging financial loss.

Professional Indemnity Insurance

Commonly known as PI insurance, offers financial protection should a client sue you if you give poor advice or do something that results in financial or reputational losses.

Public Liability Insurance

Public liability insurance protects you if a member of the public suffers an injury or if any of their property is damaged because of your business. It can cover legal costs and any compensation claims, if your business is found to be at fault.

Trustee Liability Insurance

Trustee liability insurance is designed to protect the trustees, directors, governors, committee members and officers of a charity, club, association or not-for-profit organisation.

Why use Jensten

Dedicated

A dedicated team to Financial Services businesses

Trusted

We are the trusted broker to Professionals.

Flexibility

Tailored insurance to the needs of your business

Talk to the experts

Our team of UK-based insurance experts are here to help, Monday – Friday, 9am – 5pm.

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Call our insurance experts during office hours (calls are charged at a local rate)

FAQs

Find answers to common insurance questions

Need Independent Financial Advisors Insurance?

For comprehensive Independent Financial Advisors Insurance

Independent Financial Advisors Insurance

It’s important for you to get the right Independent Financial Advisors Insurance. To help you do that, here are our Financial Advisors Insurance frequently asked questions. We hope they are of use, but if you’d like some independent advice, please call us on 0190 395 3500, and the team will be happy to help.

Is Independent Financial Advisors Insurance a legal requirement?

Am I insured to drive any car on a motor trade insurance policy?

What's the difference between road risks and traders' combined insurance?

How much does Independent Financial Advisors Insurance cost?

How can I cut the cost of my Independent Financial Advisors Insurance

How can I get a Motor Trade Insurance quote?

Getting a quote is easy. You can call us on 0208 298 2100, and the team will be happy to help you find the protection you need. We work with a panel of different insurance companies and can help find the appropriate cover to suit your individual needs.

Now the profession is regulated by the Financial Conduct Authority (FCA) who stipulate minimum levels of required coverage that must be purchased, however the minimum level required may not always be suitable for the company’s needs. Currently, the minimum levels are:

€1.25 million for each and every claim
€1.85 million for claims in the aggregate

It’s also important for firms to ensure that they have:

Ongoing cover from when your organisation starts
An insurance policy that has an excess no higher than the minimum level specified
Adequate cover in respect of Financial Ombudsman Service (FOS) awards

On 1st April 2019, the FOS award limit increased from £150,000 to £350,000. Following this, the Chartered Institute for Securities & Investment warned the FCA that there may be unintended consequences for its SME members.

The exposure posed by IFAs has serious potential for high-severity claims. With the principal risk arising from monetary loss attributable to the insured’s negligence. The below identifies commonly accepted views on professional activities:

IFA Professional Indemnity Insurance requirements

Medium risk IFA professional activities

Estate planning
Home equity release
Investment advice
Income drawdowns
Mortgages
Pensions
SIPPs

High risk IFA professional activities

Corporate finance
High profile clients
Individual investments +£250k
Mergers & Acquisitions
Tax mitigation
Unregulated investments

If your firm operates in traditionally high-risk activities, then we will need to dig into the detail so we can present your risk to our insurer partners. For example: investment type: amounts; providers; performance; and percentage of your clients investment portfolio.

The policy could protect you against:

Professional Negligence / Civil Liability
Cover for financial failure of a financial institution
Excess not applicable to defence costs and expenses only
Loss of documents and data cover
Cover for mitigation costs
Court attendance costs cover

Industries

Expertise And Insurance

Independent Financial Advisors Insurance

A Financial Advisors Insurance policy includes Professional Indemnity Insurance to cover your professional risks, and can include additional insurance policies to cover your business-related risks.

Why IFAs choose Jensten for their Financial Advisers Insurance?

Need Independent Financial Advisors Insurance?

For comprehensive Independent Financial Advisors Insurance

What does Independent Financial Advisors Insurance cover?

Business Travel and Personal Accident Insurance

Cyber Insurance

Directors’ and Officers’ Insurance

Employers’ Liability Insurance (EL insurance)

Fidelity Insurance

Management Liability Insurance

Motor Fleet Insurance

Office Insurance

Pension Liability Insurance

Professional Indemnity Insurance

Public Liability Insurance

Trustee Liability Insurance

Why use Jensten

Dedicated

A dedicated team to Financial Services businesses

Trusted

We are the trusted broker to Professionals.

Flexibility

Tailored insurance to the needs of your business

Talk to the experts

Online

Phone

FAQs

Need Independent Financial Advisors Insurance?

For comprehensive Independent Financial Advisors Insurance

Independent Financial Advisors Insurance

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