What are the FCA’s PI requirements?
What every authorised firm needs to know.
Mortgage BrokerInsurance
Mortgage Broker Insurance
Professional indemnity cover built for mortgage brokers, meeting the FCA requirement that applies to every authorised firm.
Professional indemnity cover built for mortgage brokers, meeting the FCA requirement that applies to every authorised firm.
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What is mortgage broker insurance?
Mortgage broker insurance is a combination of covers built around arranging regulated mortgage contracts, professional indemnity for advice that causes a client a financial loss, employers’ liability if you have staff, and cyber cover for the financial data you hold.
The FCA requires every firm authorised to carry out regulated mortgage activity to hold professional indemnity insurance, it isn’t optional, and firms have been fined for trading without it.
Mortgage broker insurance can include:
Professional indemnityEmployers’ liabilityPublic liabilityFidelity guarantee coverBusiness interruptionCyber insurance
Cover often bought alongside mortgage broker insurance
Professional Indemnity
Covers claims that mortgage or protection advice caused a client a financial loss.
Employers’ Liability
A legal requirement once you employ any staff, even casual help.
Public Liability
Covers claims if a client or visitor is injured or their property is damaged.
Business Contents
Protects your office, IT equipment and documents.
Cyber Insurance
Covers costs following a data breach involving client financial data.
Does the FCA require your firm to hold PI cover?
Does the FCA require your firm to hold PI cover?
This is a regulatory requirement, not just good practice.
This is a regulatory requirement, not just good practice.
| Firm type | PI required? | What to know |
|---|---|---|
FCA-authorised mortgage broker | Yes, a condition of authorisation | Reported on your Retail Mediation Activities Return |
Appointed Representative (AR) | Covered under the principal firm’s policy | Check your AR agreement covers this |
Principal firm with ARs | Yes, must cover current and former ARs too | Includes former ARs, not just current ones |
Not FCA-authorised | You cannot legally arrange regulated mortgages | FCA authorisation itself may be required |
Top Tip
Trading without required PI cover is a genuine enforcement risk, the FCA has fined and banned advisers specifically for arranging mortgages without it in place.
How much does mortgage broker insurance cost?
There’s no fixed price. It depends on your annual income, level of professional indemnity cover, staff numbers and claims history.
Annual income
Insurers often look at total income when calculating your premium.
Number of staff
More employees increase your employers’ liability exposure.
Services offered
Advised mortgage and protection advice can carry different risk to non-advised services.
Number of Appointed Representatives
A principal firm’s cover must extend to current and former ARs.
Level of cover
Higher indemnity limits increase your premium.
Claims history
A clean claims record helps keep premiums down at renewal.
How to get mortgage broker insurance
How to get mortgage broker insurance
Getting mortgage broker insurance takes four steps: tell us about your firm, choose your covers, compare specialist insurers, then get covered, often the same day.
Getting mortgage broker insurance takes four steps: tell us about your firm, choose your covers, compare specialist insurers, then get covered, often the same day.
1
Tell us about your firm
Your services, income and whether you have staff.
2
Choose your covers
Professional indemnity, employers’ liability and any extras.
3
We compare specialist insurers
We search our panel of 20+ UK insurers.
4
Get covered and trading
Receive your documents, usually the same day.
UK-based specialist advisersAccess to specialist insurersNo obligation, just expert helpTrusted by thousands of businesses across the UK
Trusted by thousands of businesses across the UK
From everyday business insurance to complex specialist cover, our customers trust Insurance Revolution to find the right protection and provide expert support when it matters.
From everyday business insurance to complex specialist cover, our customers trust Insurance Revolution to find the right protection and provide expert support when it matters.
Mortgage broker insurance guides
Mortgage broker insurance guides
Practical advice on cover, FCA rules and staying protected.
Practical advice on cover, FCA rules and staying protected.
Mortgage broker insurance FAQs
Mortgage broker insurance FAQs
Straight answers on cover, FCA requirements and cost.
Straight answers on cover, FCA requirements and cost.
Mortgage broker insurance is a combination of covers built around arranging regulated mortgage contracts: professional indemnity for advice that causes a client a financial loss, employers’ liability if you have staff, and cyber cover for the financial data you hold.
Still have questions?
Our advisers are here to help you find the right solution.
Related professions we cover
Related professions we cover
Mortgage brokers share FCA and advice risks with these professions. Each has its own cover needs.
Mortgage brokers share FCA and advice risks with these professions. Each has its own cover needs.
Estate Agent Insurance
Property transactions where brokers and agents work together.
Accountant Insurance
Regulated advice with professional body indemnity minimums.
Surveyor Insurance
Valuations that mortgage lending decisions rely on.