Publication aims to help brokers understand their liabilities when advising clients
Biba has launched a new guide for brokers to help them manage their financial risk and avoid being sued for negligence.
The new publication, entitled Facts About Limitation of Liability, aims to help brokers understand their liabilities when advising clients. It focuses on their regulatory obligations and legal position.
The publication has been launched by the London Market Region Committee (LMRC) at a time when brokers face having to increase their professional indemnity cover. The poorly performing economy has led to an increasing number of firms being sued for negligence.
The guide also gives information on what a limitation of liability clause or agreement might contain, as well as what it should not.
LMRC chairman Ken Davidson said: “This is a very complicated subject fraught with potential pitfalls for brokers, with both legal and regulatory restrictions. We have sought legal opinion.”
Towergate deputy group chief executive, and LMRC committee member, Amanda Blanc said: “It’s about time there was clarity on this subject. This is really about brokers putting their own risk management advice into practice while still providing their clients with a good level of protection.”