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.
Business Insurance |
Independent Financial Advisors Insurance
Why IFAs choose Jensten for their Financial Advisers Insurance?
At Jensten, we understand the unique challenges facing mortgage brokers in today’s complex regulatory environment. Whether you’re an independent mortgage adviser, part of a broker network, or running a multi-adviser firm, you need specialist insurance protection that understands your specific professional risks and regulatory obligations.
The mortgage advice sector operates under strict FCA oversight, where even minor administrative errors or advice shortfalls can result in significant professional liability claims. Our specialist Financial Services team has extensive experience arranging appropriate insurance cover for mortgage brokers, understanding both the traditional advice risks and emerging challenges like cyber threats and data protection breaches.
Building on our knowledge of serving financial services professionals, we can arrange extensive insurance cover designed specifically for mortgage advisory businesses. With tailored solutions that reflect your specific activities and client base, you gain protection without compromising on the flexibility to grow your business.
Trusted Advisor
Every Step Of The Way
What does Independent Financial Advisors Insurance cover?
Cover can include:
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.
Directors and Officers Liability 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.
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.
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.
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.
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.
Our Team Of
Financial Institutions Insurance Specialists
Questions?
Ready to protect your scale-up with insurance that matches your ambition? Contact us today to start a conversation. Let’s build a insurance roadmap that powers your growth and reflects your values.
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Independent Financial Advisors Insurance FAQs
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 01903 953 500, and the team will be happy to help.
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