From Adviser Guide: Picking a network part 2
Q: What impact will this have on my PI insurance?
The main consideration when a firm is a member of a network is that the network is responsible for handling complaints and arranging PI cover for the member.
This can be an advantage, according to Keith Richards, group distribution and development director of Tenet, as the IFA firm doesn’t have to worry about sourcing insurance and negotiating claims.
Firms also benefit from the scale and buying power of the network and an almost guaranteed availability of coverage and stability of pricing.
An important consideration if a firm is moving from one network to another or going from directly authorised to becoming an AR is that the network’s PI would usually only cover ongoing advice with the network.
The adviser would need to remember they still had an exposure from their previous activities and it is recommended that they source run-off insurance cover.