Professional approach
Brokers are not legally obliged to maintain professional indemnity cover but they should not underestimate the benefits it offers in an increasingly litigious society. Peter Ellingham explains.
Unlike other professionals, insurance brokers are not required by lawor through regulations to maintain professional indemnity insurance.
The vast majority of brokers maintain the cover as a safety net, however,
as a measure of protection against the consequences of errors and
omissions and/or unmerited claims.
The broker's role is such that a brokerage is not only accountable for its
own actions but others' too, typically the insured and the insurer, over
which the broker may have little control
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