Reviewed by Apex Insurance Brokers · Published 16 July 2026
Choosing a professional indemnity broker is one of the few procurement decisions that materially shapes how a claim is handled, what cover responds when a matter goes wrong, and what the renewal looks like for the next five years. For a UK regulated firm — solicitor, architect, surveyor, accountant, IFA, engineer, IT consultant — the broker sits between the practice and an insurer market that does not read your professional body's rulebook for you. Get the broker right and the placement is straightforward, the wording matches the exposure, and a claim is handled by someone who understands why the notification threshold matters. Get it wrong and cover is placed at the wrong limit, on a wording that misses the wrong exclusions, and defended by a claims team that has never handled a firm in your profession. This is a working guide to choosing a broker: what a broker actually does for the fee, the questions to put in writing before you instruct, the red flags to watch for, and the framework the FCA now expects buyers of insurance to apply under Consumer Duty.
A PI broker is an FCA-authorised insurance intermediary. The regulated activity — insurance distribution — is defined in the FSMA 2000 (Regulated Activities) Order 2001 and by ICOBS in the FCA Handbook. Practically, a competent PI broker performs six functions. First, they identify the professional body rulebook and statutory duties that shape the cover — SRA Minimum Terms and Conditions for solicitors, ICAEW Bye-law 61 for chartered accountants, RICS Rules of Conduct Rule 9 for surveyors, ARB Standard 8 for architects, FCA IPRU-INV for IFAs. Second, they structure a submission that satisfies the client's duty of fair presentation under section 3 of the Insurance Act 2015. Third, they market the risk to insurers with capacity in that class — Lloyd's syndicates, company market, delegated authority binders. Fourth, they compare terms across markets, read the wording end-to-end, and explain what is covered, excluded, or narrowed. Fifth, they place the risk on the wording that best fits the firm and provide the demands-and-needs statement, TOBA and IPID required by ICOBS 6. Sixth — the part most often underdone — they handle claims and circumstance notifications through the life of the policy, protecting the client's position against limitation and rescission.
The starting question. A generalist commercial broker can arrange PI cover; a sector-specialist reads the professional body rulebook every year and knows which insurer wordings satisfy it. For a solicitor firm subject to SRA MTC, the broker must know that MTC minima cannot be varied and that the qualifying insurer list changes. For an architect subject to ARB Standard 8, the broker must know that Standard 8 sets an adequacy standard rather than a rigid formula, and that the reasonable adequacy assessment is documented at renewal. For an ICAEW firm, the broker must apply the 2.5-times gross fee income minimum limit formula and understand how it caps. Generalists rarely hold these rulebooks in working memory. That does not make them dishonest; it makes them the wrong pick for a firm whose regulator polices PI cover as an ongoing conduct matter.
Every UK insurance broker arranging PI cover must appear on the FCA Register at register.fca.org.uk. A search takes under a minute and is the single most useful due diligence step a professional buyer can take. Look for the firm reference number (FRN), the status line (Authorised or Appointed Representative), the permissions granted (insurance distribution should be listed), any trading names in use, and any published enforcement history. If the broker operates as an Appointed Representative, the Principal firm will be named — click through and verify the Principal's own status. Neither directly authorised nor AR is inherently better, but the buyer is entitled to know which route the broker uses. Apex Insurance Brokers Limited holds FRN 724952 and is directly authorised.
Put them in one email, dated, with a five-working-day response window. The answers should be in writing on broker letterhead. What is your FCA firm reference number and what permissions do you hold? Which insurers do you currently place PI for firms in our profession, and at what financial strength rating? Are you remunerated by commission, fee, or both — and if commission, is the rate consistent across the panel? Who handles a claim notification, and what is the typical acknowledgement time? What is your policy on circumstance notification? How are conflicts of interest managed when one client's claim involves another client of yours? Are you listed on any profession-specific broker register or recommended list? Can you provide a TOBA, demands-and-needs statement and IPID before I commit to any placement? 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. Our long-form version is at the 8 questions guide.
Vague answers on the panel of insurers ("we have market access") without naming the insurers. Reluctance to provide the FRN or to specify whether the firm is directly authorised or an AR. Use of restricted or misleading phrasing — "whole-of-market" is now restricted by the FCA and reputable brokers no longer use it. Superlative claims without a documented basis, which run against the fair, clear, not misleading requirement in COBS 4.2. Silence on remuneration when asked in writing. A commission structure that varies materially across the panel without disclosure. No named individual for claims handling. A policy on circumstance notification that is either non-existent or reflexive (over-notification at every renewal creates its own problems at future renewals). Any answer that a firm's own compliance officer would flag if their staff gave it.
Two conversations, one written follow-up. First conversation, 30 minutes, over the phone or in person. Ask the broker to walk you through how they would structure the submission for a firm your size in your profession. Listen for whether they can articulate the rulebook mechanics without reading from a script. Second conversation, 45 minutes, on wording. Ask them to walk through the base wording they would use, and specifically how it treats the two or three exposures your firm actually runs (audit work if you are an accountant; adjudication if you are a construction consultant; suitability if you are an IFA; DB pension transfer legacy for pre-2018 advice; MEES-driven refurbishment for a surveyor). Then send a written follow-up covering the eight questions. Instructing a broker before you have both conversations is instructing on a hunch.
PRIN 2A — the Consumer Duty — applies to firms in the distribution chain of retail insurance products. Commercial PI does not always trigger Consumer Duty in the same way, but the four outcomes are a useful buyer framework regardless. Products and services: does the cover fit the target market of firms in your position, or is it a repurposed wording? Price and value: is the premium proportionate to the benefit — cover limit, insurer strength, breadth of wording, claims service — or is it price-only? Consumer understanding: has the broker explained the exclusions and warranties in language you can act on, or is the demands-and-needs statement boilerplate? Consumer support: does the broker have a named claims contact and a written process, or is the claims line a switchboard? A broker who cannot walk a client through the fair-value assessment for their own product has not read PRIN 2A in the way the FCA now expects.
A signed TOBA setting out scope, remuneration and complaints procedure. A demands-and-needs statement explaining why the cover is suitable. The IPID for the proposed policy. Written confirmation of whether the placement is advised or non-advised (the distinction matters — advice creates a documented advisory record; non-advised places the assessment on the client). A clear statement of regulatory status including the FRN. If any of the four are missing after the first week of instruction, escalate. All four are required for a compliant commercial placement.
What is the difference between a directly authorised broker and an appointed representative? A directly authorised broker holds its own FCA permission under FSMA 2000 s.31. An AR operates under the authorisation of a Principal firm under FSMA 2000 s.39. Both are legal; the Register shows which route your broker uses. See the DA vs AR explainer.
Should I use my accountant's broker? Only if that broker is a specialist in your profession, not theirs. Same-firm placement of unrelated professions through one broker is a convenience trap.
How often should I review my PI broker? Formally every three to five years, informally at every renewal. A review is not a rejection; it is a process discipline that keeps everyone honest.
Can I switch broker mid-term? Yes. The switch is administrative, not contractual — the policy stays with the insurer and the broker of record changes. Both brokers cooperate on the file transfer.
What if my professional body has a recommended broker list? Verify each listing independently at the body's website. Recommendation lists are useful signals; they are not endorsements.
Do I need a specialist broker if my firm is small? The rulebook is the same regardless of firm size. A sole practitioner solicitor is under SRA MTC in the same way as a 200-partner firm. Specialist placement matters most at claim time.
How do I check an insurer's financial strength? S&P Global Ratings, AM Best and Fitch all publish insurer ratings. Lloyd's syndicates share the Lloyd's central rating; company market insurers have individual ratings. See the A-rated vs unrated explainer.
Talk to a directly authorised specialist
Reviewing your PI broker? Apex is directly authorised (FRN 724952), places PI for regulated professionals through Lloyd's syndicates and company market insurers, and puts a named broker on every account.
Related reading: The 8 questions to ask any PI broker · How to compare PI brokers · Questions to ask your PI broker · Broker fees and commissions explained · Directly authorised vs Appointed Representative · Consumer Duty for professional firms · PI tools hub