Spiralling broker PI costs are a real challenge

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The rising cost of professional indemnity (PI) cover for brokers has thrown up a range of new challenges for firms. 

In recent years some medium-sized brokers have seen their PI premium spend increase fourfold with many having to pay up to £5000 to ensure adequate cover.   

Over the last 12 months alone, some rates quoted have doubled. It is a far cry from the pre-Financial Services Authority days when PI cover for general insurance brokers wasn’t even compulsory. 

The UK economy’s collapse into