Professional indemnity insurance broker IFA Solutions has secured a deal with its underwriters to provide PI cover with preferential terms for firms who have been awarded accredited financial planning firm status.
Accredited financial planning firms, as designated by the Institute of Financial Planning, will be covered for full legal liability, rather than cover being limited to a negligent act, error or omission.
Partners, directors, employees and former staff at accredited financial planning firms will also have fraud cover of up to £250,000.
Cover will extend to previous business activities where the adviser was part of a network, as well as costs to defend any criminal proceedings, costs of legal representation and any costs awarded.
Subject to the policy conditions, newly acquired, merged or created businesses will also be automatically included as part of the cover.
The deal was announced at the IFP’s annual conference in Newport last night.
IFA Solutions managing director Jamie Newell says: “During the last six months or so we have been doing research into accredited firms and it has been clear that they present a far better PI risk to insurers than other IFAs. The number of claim notifications that come in from accredited firms is also far lower compared to advisers. That is how we have managed to improve the coverage from standard PI.”
IFP chief executive Nick Cann says: “I have for years tried to do something on this basis. When you are focused on professionalism, it starts to come back to that idea of a regulatory dividend and the focus on delivering a good service.”