Simply Biz indemnity insurance
Many claims arise through misunderstandings, which may be
difficult to substantiate without documentary evidence. Conduct all
your business as professionally and openly as possible, maintaining
a full audit trail of the business conducted in the
process. Finance brokers should have detailed terms of
business in place with customers outlining the process, as well as
service agreements with suppliers, such as packagers, lenders and
‘insurance and software providers’. Whenever possible, signatures
should be obtained on documents. Written records of all meetings
and telephone conversations with clients and providers should also
be retained on file.
Claims procedure
If you become aware of any circumstance that could give rise to
a claim, it is essential you notify your insurers immediately.
Warning signs include:
- Verbal complaints from a dissatisfied customer, or threats to
take the matter further
- Complaint alleging mis-selling, neglect, error or omission
- Allegations of financial loss or damage by providing incorrect
products or poor service
- Allegations of financial loss resulting in completion delays
due to the brokers negligence
- Complaints relating to unexpected redemption penalties
- A client refusing or delaying settlement of fees
Once you have notified insurers of a possible issue, they will
assist you by providing guidance on how best to conduct future
dealings with the client. Depending on the circumstances, insurers
may appoint legal advisers to assist you.
Please tell your insurers even if you only suspect that a
complaint will be notified and they will provide feedback on how to
deal with the matter.
It is important to understand that, should a complaint not be
notified in time and it deteriorates into a serious matter, your
policy may not respond to the allegations due to late notification.
If in doubt, tell us.