Howden UK, the largest Lloyd's broker specialising in
Professional Indemnity (PI) has today announced a new extension to its PI policy for Biba brokers in response to the increasing need for protection from the threat of FSA investigations.
The policy extension will provide brokers with up to £100,000 of cover for costs incurred during official investigations or 'special proceedings'.
Special proceedings means any official investigation, examination or other proceedings ordered or commissioned by any official body or institution that is legally empowered by statute to investigate the affairs of the insured or its employees.
Richard Wynn, director of Howden UK, said: "Following the liquidation of Whiteley Insurance Consultants and investigations into top 50 broker BPS Insure, it is rumoured that further intermediaries have been brought to the FSA's attention over fears they could be trading illegally, and the FSA has made it clear it expects to bring more prosecutions this year in its drive against market abuse.
"In April the FSA outlined a catalogue of violations it has already detected, and warned brokers they face tough inspections. Our new PI extension will plug the gap that most broker policies will currently have as a result of the increased risks from FSA investigations, offering brokers peace of mind that costs and expenses will now be covered should the FSA call."
