Buyer’s Guide To PII.pdf

This guidance helps buyers make informed choices when purchasing professional indemnity insurance, using the market effectively, and understanding their obligations. Buyers must inform their insurer and/or broker of the reserved areas of law in which they have obtained authorisation from CILEx Regulation. Using a broker is an individual business decision, and buyers should consider factors such as the broker's access to the market, level of advice, and potential ties to specific insurers. The Financial Conduct Authority (FCA) register and the British Insurance Brokers' Association (BIBA) search facility can be used to find authorised brokers. Buyers should ask about brokerage fees, premium financing options, run-off costs, and extended indemnity period costs. They should also understand the level of service provided by the broker, whether it's an execution-only or advisory service, and be aware of any potential limitations or ties to specific insurers. Additionally, buyers should consider the costs of insurance premium tax (IPT), fees, and commission, and ensure they understand the terms of their policy before purchasing.