A FRESH LOOK AT PROFESSIONAL INDEMNITY

For many IFAs Professional Indemnity Insurance premium payments now constitute their largest annual outlay, after property and salaries. IFAs are being squeezed between Financial Services Authority requirements for compliant policies and the insurance market's contraction and unwillingness to provide the compliant cover sought.

Currently the terms offered by the insurance market to IFAs do not offer any real protection in respect of any matter that could involve more than one customer.The imposition of significant "any one claimant" excesses means that the IFA retains a substantial element of the risk should an error affect a group of customers. Additionally, insurers impose exclusions for a whole range of matters. However, the FSA insists that all IFAs must have policies with a prescribed minimum limit of indemnity, so that all the IFA obtains is the ability to carry on business whilst the insurance provides little real protection.

In an attempt to provide cost effective and compliant cover, Gauntlet Risk Management Ltd, and Thomas Miller Risk Management Ltd, has created Gauntlet Club - a Professional Indemnity Club for IFAs.

With a legal constitution, Gauntlet Club brings together selected IFAs who are commited to the promotion of professional business standards, rigorous compliance procedures and best practice.Through Gauntlet Risk Management Ltd, Gauntlet Club members are enabled to fund their PI exposures on a mutual basis within Gauntlet Standard Insurance Company Ltd which is an authorised Bermuda based Insurance Company.

The procedure for obtaining cover is simple. Complete the downloadable Proposal Form and return it to Gauntlet. A guidance booklet "Raising The Standard", a copy of the policy wording and the GSI Byelaws are available in Microsoft Word document format by clicking on the links below. Please read the documents carefully.
Download the Gauntlet Raising the Standard document

Click the image to download the GSI Byelaws document

Click the image to download the Policy Wording document