Hiscox Insurance Company has launched a professional indemnity policy for secondary intermediaries.
From January 2005, the EU Insurance Mediation Directive (IMD) comes into effect, which will mean that insurance intermediaries will be required to buy PI cover. This includes those agents who sell insurance as an add-on to another product, rather than as their main product.
The FSA estimates that there are between 70,000 and 150,000 secondary intermediary firms in the UK.
As the cover needs to be in place by 15 January 2005, Hiscox is currently offering up to 19 months cover, expiring 15 January 2006, at a discount to the pro rata annual premium.
