Professional indemnity insurance guidelines

All licensees are required to maintain professional indemnity insurance with a registered/licensed insurer in respect of potential claims against the licensee, to a minimum amount of one million dollars ($1,000,000), during the currency of the licensing.

The development of the above template was undertaken in consultation with insurance industry professionals to achieve the best policy for both finance brokers and consumers.

Some features include:

• unlimited retroactive cover;
• cover for awards up to $100,000 for any ASIC approved alternate disputes resolution service; and
• 12 month automatic run-off cover from date of deregistration.

New or renewed PI insurance policies submitted by brokers in respect of a broker’s licence are required to meet the minimum provisions provided for in the guidelines.