Mortgage Brokers Professional Indemnity Insurance

Mortgage Brokers (Credit / Home Finance Intermediaries) require Professional Indemnity Insurance that complies with FCA / MIPRU rules.

Professional Indemnity (PI) Insurance for mortgage brokers is a regulatory requirement for all firms giving mortgage advice or arranging home-finance products.
Adequate and appropriate FCA-compliant cover protects both mortgage advisers and their clients against claims of negligent advice, documentation errors or administrative mistakes.

If you’re providing mortgage advice, protection advice or home-finance intermediation, it’s essential your PI insurance for mortgage brokers meets the standards set out under
MIPRU 3.2 – Minimum Limits for Credit Intermediaries.

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What Are the Differences Between Pure Mortgage Advice vs Mortgage + Insurance Business?

If you only advise on and arrange mortgage or credit home-finance products, you fall under the credit intermediary rules.
However, if you also distribute insurance (life, protection, or home insurance), you fall under the insurance intermediary / distribution regime — requiring higher limits of indemnity.

Our team arranges professional indemnity insurance for mortgage advisers and brokers throughout the UK, ensuring compliance whether you operate as a sole trader or limited company.

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When We Can Help Mortgage Brokers

• Directly authorised mortgage brokers needing FCA-compliant PI insurance
• Mortgage advisers adding protection or insurance advice (higher limits apply)
• Brokers switching insurer or seeking top-up or renewal terms
• Firms expanding into buy-to-let, bridging or complex lending markets
• Networks requiring FCA-required PI insurance for appointed representatives

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When It May Be Challenging to Obtain Cover

• Complex lending (unregulated bridging, overseas lending exposure)
• Mixed business combining mortgage and high-volume insurance advice
• Large historic claims or FCA regulatory breaches
• High proportion of protection or financial-services income
• Investment or financial advice – regulated under IPRU (INV) and requiring full FCA Part 4A permissions

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Regulatory PI Limits for Mortgage Intermediaries

Under MIPRU 3.2 for credit and home-finance intermediaries, the FCA requires:

• €460,000 (approx. £400,000–£420,000) per individual claim; and
• €750,000 (approx. £650,000) in aggregate for all claims in a year.

If you also distribute insurance products, you must meet the FCA minimum PI insurance for insurance intermediaries, which is considerably higher – for example, **€1,924,560** aggregate or the higher of that and 10% of annual income.

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Typical Professional Indemnity Cover for Mortgage Brokers

• Negligent advice or unsuitable mortgage recommendations
• Administrative or documentation errors
• Misrepresentation or failure to disclose product information
• Data-protection or confidentiality breaches
• Defence costs and Financial Ombudsman awards

Our policies meet FCA-required PI insurance for mortgage brokers and mortgage advisers in the UK.
We can help you compare mortgage broker PI insurance options from leading UK insurers to ensure value and compliance.

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What About Financial or Investment Advice?

Firms that provide or arrange investment or financial advice (beyond mortgages and protection) are not covered under the mortgage intermediary rules.
Such firms fall under the IPRU (INV) regime, which sets much higher minimum limits of indemnity — typically around **€1,300,380** per claim and **€1,924,560** in aggregate — and may require additional capital adequacy.
Many insurers will not quote if investment advice is included, so it’s vital to clarify your permissions before seeking cover.

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Guidance & Support for Mortgage Brokers

• FCA Handbook – MIPRU 3.2: Professional Indemnity Insurance Requirements
  Details the minimum FCA professional indemnity insurance requirements for mortgage and credit intermediaries.
• FCA Handbook – MIPRU 3.3: Qualifying Conditions and Scope of Cover
  Outlines what your PI policy must include, such as cover for acts of appointed representatives.
• FCA Guidance: Professional Indemnity Insurance for Regulated Firms
  Explains why PI insurance is mandatory and what firms should look for in compliant policies.
• FCA Financial Services Register
  Check whether your firm’s permissions cover mortgage, insurance, or investment business.
• FCA Policy Statement PS20/09 – Strengthening PI Insurance for Regulated Firms
  Sets the FCA’s expectations for PI policy quality and scope of protection.

Need Help Understanding Your Obligations?
Our specialists arrange professional indemnity insurance for mortgage advisers and brokers across the UK, helping firms stay compliant with FCA mortgage intermediary PI insurance requirements.
Request a Quote or Contact Us for tailored advice.