Tenet is launching a permanent run-off professional indemnity insurance policy for retiring network members.
The firm says the cover, which will be provided by Tenet’s Guernsey-based subsidiary Paragon Insurance, is aimed at advisers who are planning to retire or sell their business. It will be available from October.
The cover will see departing advisers pay a lump sum premium equivalent of two years’ PII premiums in return for guaranteed indefinite cover.
It will also be available to former Tenet advisers and will cover any advice written while a Tenet member.
Tenet distribution and development director Keith Richards (pictured) says: “This deal makes it an eminently affordable alternative to renewing every 12 months and will provide complete peace of mind for the future given that advisers are not protected by a long-stop afforded to other professions.”
Tenet is in talks to secure similar arrangements for its directly authorised firms.
In July, Tenet announced it was offering a 50 per cent discount on the cost of professional indemnity insurance excess for claims involving risk-rated multi-asset funds.