Reviewed by Apex Insurance Brokers · Published 16 July 2026
If a UK professional services firm is reviewing its professional indemnity broker — at renewal, mid-term, or at the start of trading — these are the eight questions that separate a broker who will earn their commission from one who is hoping to invoice for it. The answers should be in writing, on broker letterhead, before any policy is bound. Send them in a single dated email with a five-working-day response window. The broker who answers all eight in writing within the window is operating to professional standards. The broker who answers selectively, calls instead of writes, or asks why you are asking, has told you what you need to know.
Why it matters. The FCA Register at register.fca.org.uk is public, free, and authoritative under FSMA 2000. Any broker who hesitates to give you their firm reference number (FRN) is not the broker you want. Look for insurance distribution permissions listed for general insurance, the trading names registered, whether the firm is Authorised or an Appointed Representative, and whether any restrictions or supervisory measures are recorded against the firm.
Green flag. An immediate, written answer with the FRN, permissions list, trading names, and (if applicable) the Principal for an AR arrangement. Direct link to their Register page.
Red flag. Delay, deflection, or a reply that gives the "firm" name without the FRN. Reluctance to confirm AR status where the Register shows one.
Why it matters. A specialist broker who actually places your profession can name five to ten insurers they work with in that class. The answer should identify each insurer, note whether they are a Lloyd's syndicate or a company market insurer, and confirm the current financial strength rating (S&P, AM Best, or Fitch). A broker who cannot give you that list in writing is either inexperienced in the class or placing all business through a single binder they do not want to disclose.
Green flag. Named insurers, financial strength ratings supplied without prompting, honest disclosure of any binder or scheme arrangements.
Red flag. "We have market access" without naming the market. Use of "whole-of-market" — a phrase now restricted by the FCA that reputable brokers no longer use. Refusal to identify any ratings.
Why it matters. ICOBS 4.4 requires brokers to disclose the basis and (on commercial-client request) the amount of remuneration. If the broker is paid 25 per cent commission by one insurer and 12 per cent by another, that creates a placement bias the client is entitled to know about. Volume overriders, profit commissions and PSC (profit share commission) arrangements affect placement decisions and should be disclosed pre-emptively where material.
Green flag. Straight answer in writing identifying commission basis, fee basis, or hybrid; any volume overriders, profit commissions, or PSC arrangements named; commercial-client rights under ICOBS 4.4 acknowledged.
Red flag. "That's confidential", "That's between us and the insurer", or a single blended figure with no detail on variability across the panel.
Why it matters. The placing broker is often not the claims handler. Some brokers outsource claims entirely; some route through a separate in-house team; some keep the placing broker involved end-to-end. Ask for the name of the individual who would handle a notification in your profession, the typical acknowledgement time, and how the client is kept updated. A broker without a named claims contact is a broker who treats claims as administrative overhead.
Green flag. A named individual, a stated acknowledgement window, and a written description of how updates are provided during the life of a claim.
Red flag. "Claims are dealt with by the team", no named contact, or a generic switchboard number.
Why it matters. Circumstance notification — flagging a matter to insurers that has not yet crystallised into a claim — protects the policy that was on cover at the time under the notification wording. This separates careful brokers from careless ones. Some brokers under-notify, leaving clients exposed when a later claim falls outside the policy period. Some over-notify defensively, creating a paper trail that prejudices future renewals. Ask for the broker's written policy. The practical steps are on our claims page.
Green flag. A written notification framework covering how the broker distinguishes matters that require notification, matters that require monitoring, and matters that do not need to go to insurers; and a described process for staging notifications against limitation.
Red flag. "We notify everything to be safe" (over-notification harms renewals). "We only notify when a letter of claim arrives" (under-notification loses cover). No written policy at all.
Why it matters. This is unavoidable in a small market. A broker handling PI for two architects on the same job, or two solicitors in opposing positions on the same matter, has a structural conflict. ICOBS 5 and PRIN 8 (customers' interests) require conflicts to be identified and managed fairly. The answer should describe information barriers, separate teams, and a written conflicts policy.
Green flag. Written conflicts policy, described information barriers, separate teams, escalation route where a conflict cannot be managed at broker level.
Red flag. "We don't get conflicts" — not an answer; evidence of inexperience or lack of self-awareness.
Why it matters. ARB, RICS, ICAEW, BIBA, IIB, IPA and other UK bodies maintain broker lists, recommendation schemes, or accredited-partner arrangements. A broker who appears on the appropriate list for your profession has gone through that body's vetting. Verify each listing independently rather than taking the broker's word for it.
Green flag. A named list with membership number or verification link; broker directs you to the professional body's site to check independently.
Red flag. A vague "we work with lots of RICS firms" without any formal listing evidence.
Why it matters. These three documents are required under FCA rules for any commercial PI placement. The Terms of Business Agreement (TOBA) sets out scope of services, remuneration basis and complaints procedure. The demands-and-needs statement records why the cover is suitable for the firm's circumstances (ICOBS 5.2). The Insurance Product Information Document (IPID) is the insurer's product summary required by the Insurance Distribution Directive. A broker who cannot produce them on request is not operating to FCA standards.
Green flag. All three sent by email attachment before the first billable hour. Advised-vs-non-advised status stated in writing.
Red flag. "You'll get those with your policy documents" (too late), or vague reference to a website page.
Read the eight answers as a set, not eight individual questions. A broker who scores well on questions 1, 2, 4 and 8 but is evasive on 3, 5 or 6 has a specific weakness. Question 3 (remuneration) evasion suggests a structural conflict the broker does not want to reveal. Question 5 (notification) evasion suggests either an under-notification habit that will lose a client cover, or an over-notification habit that will drive up renewals. Question 6 (conflicts) evasion suggests a firm that has not thought about it, and will not have thought about it when your claim collides with another client of theirs.
Also read the response mode. A broker who insists on a phone call to answer written questions is a broker who does not want a written record. A broker who answers by email in the same language you asked in, with plain English and specific facts, is a broker whose file will bear scrutiny at renewal, at complaint stage, and at claim stage.
Send it to the broker's named contact, copied to your firm's compliance officer or company secretary. Date it. Give five working days. A template opening:
"Dear [broker], as part of our regular PI broker review under our conduct-of-business framework, we would be grateful for written answers to the eight questions below within five working days. Please answer in writing rather than by phone; the responses will be filed. Please copy the compliance officer named in the To line. Yours..."
The five-working-day window is generous and reflects a proportionate review process. The broker who cannot meet it on questions this basic will not meet a claim notification deadline.
Apex Insurance Brokers Limited expects clients to ask these questions and answers them all in writing before any placement. FCA firm reference number 724952, directly authorised, insurance distribution permissions for general insurance. Companies House 07014570. Named broker on every placement. Written notification policy. Written conflicts policy. TOBA, demands-and-needs and IPID sent before instruction. Full remuneration disclosure to commercial clients under ICOBS 4.4. Our retention across the book is 95 per cent year on year, measured on client count at renewal.
Should I ask these questions of my existing broker? Yes, especially before renewal. A five-year relationship is not a reason to skip a broker review; it is a reason to formalise one.
How long should a broker take to answer? Five working days is reasonable for eight structured questions. A well-run broker will answer within two or three.
What if the broker's answer references material that is confidential? Confidentiality can be handled with an NDA if the broker asks for one. Blanket refusal to answer is not confidentiality; it is evasion.
Can I use these questions during a tender? Yes. The eight are a structured shortlist filter. Combine with a face-to-face conversation on wording.
Do these questions apply to non-regulated firms? Yes. The broker's regulatory obligations do not change based on the client's regulatory status.
What if the broker gives good answers but the wording is wrong? The broker interview is one input. Wording review is the other. Both matter.
Can I download this as a checklist? Yes — a printable PDF is available on request from info@apexinsurancebrokers.co.uk.
Reviewing your PI broker?
Send us the eight questions. Apex will answer all eight in writing within five working days. Directly authorised, FRN 724952, named broker per account.
Related reading: PI broker selection guide · How to compare PI brokers · Questions to ask your PI broker · Broker fees and commissions explained · Directly authorised vs Appointed Representative · PI tools hub