🏦 Mortgage Broker Insurance

Mortgage Broker Insurance — Cover Built for Your Trade

Get quotes for public liability, professional indemnity, tools and employers' liability insurance for UK mortgage brokers — quotes are provided directly by FCA-authorised insurers, not by us.

  • Public liability from £1m to £10m
  • Tools and equipment cover included
  • Employers' liability if you have staff
  • Same-day cover available
  • Tailored to mortgage broker risks
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Risks Specific to Mortgage Brokers

Every trade faces unique risks. Here's what could go wrong and why the right cover matters.

💡 Most mortgage brokers need at minimum: Professional indemnity insurance meeting the FCA's MIPRU 3.2 minimum terms — this is a regulatory requirement for FCA-authorised firms, not an optional extra.

The Interest-Only Mortgage Claims Wave

Mortgage brokers face a distinctive, currently active risk: a wave of litigation over interest-only mortgage advice given many years ago, now reaching the courts in volume.

Old Advice, New Claims

Claims firms have been bringing cases against brokers over interest-only mortgages sold roughly between 2006 and 2014, alleging the broker recommended the mortgage without a viable repayment plan in place. These cases are working through the courts now, sometimes nearly two decades after the original advice.

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Why the Retroactive Date Matters

Because PI is claims-made, the policy that responds is the one in force when the claim lands — not when the original advice was given. If your retroactive date doesn't reach back far enough, or there's a gap in your insurance history, a claim about decade-old advice could fall into a coverage gap.

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A Different FCA Minimum Than IFAs

Mortgage and home finance intermediaries sit under their own part of MIPRU 3.2, with a minimum limit generally set at the higher of 10% of annual income or £1 million — lower than the minimum that applies to firms also giving investment advice. If you distribute insurance products alongside mortgages, check which limit actually applies to your firm.

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Limitation Isn't Automatic Protection

Courts have considered when a client "knew enough" to bring a claim, which affects whether old cases are time-barred. Some claims have failed on limitation grounds, others have proceeded to trial — so don't assume the passage of time alone rules out a claim about old advice.

⚠️ Why this matters for your cover: If you've been advising for some years, check your PI policy's retroactive date covers your full trading history, and confirm whether your firm's activities fall under the standard mortgage intermediary minimum or the higher investment-advice minimum. This page is general guidance only; always confirm current FCA requirements and your specific exposure with a specialist broker.

What Does Mortgage Broker Insurance Cover?

A strong policy covers the specific risks of your trade — from negligent advice claims to data breaches and client disputes.

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Professional Indemnity

Protects against claims of negligence, errors or bad advice from clients. Essential for any business that provides advice, designs or professional services. Covers legal costs and compensation.

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Public Liability

Covers injury or property damage to clients or third parties at your office or client premises. Required by most co-working spaces and client contracts.

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Employers' Liability

Legally required if you employ anyone. Covers employee injury or illness claims arising from their work. Minimum £5 million required by law.

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Cyber Insurance

Covers data breaches, cyber attacks and GDPR fines. Professional service firms handle sensitive client data — cyber insurance is increasingly essential.

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Office & Contents

Covers your office equipment, computers and business contents against theft, fire and accidental damage at your premises.

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Legal Expenses

Covers legal costs for contract disputes, employment tribunals, HMRC investigations and debt recovery.

What to Look for When Comparing Mortgage Broker Insurance

A few things worth checking before you buy, whichever UK insurer or broker you compare.

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Indemnity limit

Check the limit matches what your contracts, landlord or clients require — common tiers are £1m, £2m, £5m and £10m depending on trade and risk.

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Claims basis

Professional and liability covers are often "claims-made" — cover depends on holding a live policy when a claim is made, not just when the work happened.

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Exclusions

Read what's excluded, not just what's covered. Sub-contractor work, specific activities, or work carried out overseas are common gaps.

FCA authorisation

Before buying, confirm any insurer or broker is authorised and regulated by the Financial Conduct Authority — check the register at register.fca.org.uk.

🤝 We're finalising partnerships with FCA-authorised UK insurers so you can compare real quotes here soon. Check back shortly, or get in touch if you'd like to be notified when comparisons go live.

Frequently Asked Questions

While not all business insurance is legally required, public liability insurance is expected by most clients, venues and contractors before work begins. If you employ anyone, employers' liability is a legal requirement. Operating without appropriate cover leaves you personally liable for any claims against your business.
Premiums vary based on your turnover, number of employees, claims history and the level of cover you choose. Most sole trader mortgage brokers pay between £100 and £600 per year for basic public liability cover. Combined policies with professional indemnity and tools cover cost more but provide broader protection.
Yes — most insurers offer monthly payment options. You'll typically pay slightly more than the annual premium in total, but it helps with cash flow. Some digital insurers offer fully flexible monthly policies with no minimum term.
Public liability covers physical injury or property damage to third parties caused by your business. Professional indemnity covers financial loss suffered by a client due to your advice, designs or services. Many businesses need both — check which applies to your work.
You need employers' liability insurance if you employ anyone — including part-time workers, temporary staff, apprentices and in some cases, subcontractors you supervise on site. As a sole trader with no employees, it's not required. The legal minimum is £5 million cover.
Claims firms have been pursuing brokers over interest-only mortgages sold roughly between 2006 and 2014, alleging the broker didn't ensure a viable repayment plan was in place. These cases are now working through the courts, sometimes nearly two decades after the original advice was given.
Only if your policy's retroactive date reaches back far enough and your PI cover has been continuous since. Because professional indemnity is claims-made, a gap in cover at any point can leave old advice uninsured if a claim about it surfaces later — which is exactly the pattern seen with interest-only mortgage litigation.
Not necessarily. Mortgage and home finance intermediaries generally fall under a different part of MIPRU 3.2, with a minimum limit set at the higher of 10% of annual income or £1 million. If your firm also advises on investments, a higher minimum may apply — check which regime covers your specific permissions.

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