As a financial planner — whether providing investment advice, pension strategy, wealth management or broader financial services — you face significant professional risk. A single error, inadequate advice, breach of duty or omission can lead to client losses, regulatory scrutiny and reputational damage.
At Fraser Bond, we help financial planners and advisory firms understand the insurance cover they need in the UK market to safeguard their business, align with regulatory obligations and maintain client trust.
For financial planners, insurance is typically a portfolio of cover types designed to address the unique risks of advisory work. Key covers include:
Professional Indemnity (PI) Insurance / Errors & Omissions (E&O) – Protects you if a client alleges that your advice, planning or service caused them financial loss.
Public Liability Insurance – Covers claims by third-parties (such as clients or visitors) for injury or property damage arising from your business operations (for example client meetings, seminars).
Cyber/Data Liability Insurance – Covers losses arising from data breaches, client information disclosure or cyber-attack affecting your advisory business.
Employers’ Liability Insurance – Required in the UK if you employ staff (including assistants, paraplanners) to cover employee injury or illness at work.
Office / Contents / Business Equipment Cover – Protects your business premises, computers, client files, equipment used for planning and advice.
These combined covers provide the safety net necessary for a modern financial-advisory practice operating in London’s complex risk environment.
In the UK — and particularly in London’s high-stakes financial market — the exposure for advisers is elevated:
The regulatory regime (through Financial Conduct Authority, FCA) demands professional standards and many advisers are required to hold professional indemnity insurance.
Financial planning advice often directly impacts clients’ income, pensions, investments and wealth — losses can be large and claims expensive.
Clients, firms, networks or host platforms may require proof of insurance as a condition of contracting or affiliation.
With remote work, digital platforms and data-intensive advice delivery, cyber and data-liability risks are significant.
Insurance thus becomes not just a safeguard but a core component of your business credibility, compliance and client-confidence proposition.
Here are benchmarks and features to consider when selecting your cover:
Professional Indemnity limits for financial advisers vary significantly — depending on size of business, turnover, client exposure and regulatory requirements.
Premium levels are influenced by turnover, claims history, nature of services (pension transfers, investment advice, high-net-worth clients), staffing, and whether you act as principal or networked adviser.
Some guidance suggests that for certain advisory services, minimum PI cover levels may be €1.25 m per claim and €1.85 m aggregate under FCA rules for investment advice firms.
Key policy features to check:
Retroactive cover: ensuring past advice is covered.
Territory/residual liability: which markets your advice covers and what happens internationally.
Exclusions: Some polices exclude certain types of advice (e.g., defined-benefit pension transfers) or specific client types.
Premiums for advisers are not just about size but risk profile — a firm doing basic general advice will pay differently than one doing complex pension or high-net-worth work.
Fraser Bond recommends this structured approach:
Define your advisory services – What do you provide? Investments, pensions, wealth management, corporate advice? The scope determines risk.
Check regulatory/client requirements – Ensure you meet any minimum insurance required by your network, platform or by the FCA.
Select appropriate cover types and limits – PI is essential; consider cyber/data, liability, contents, business interruption.
Review policy wording & exclusions in detail – Ensure your exact services are included and you understand what is excluded.
Match your limits to your risk – If you advise high-net-worth clients, or handle complex products or cross-border work, choose higher limits.
Work with a broker specialising in financial-services risk – The market is specialist and complex.
Maintain continuous cover – Claims might emerge from past advice; a gap in cover or inadequate retroactive date can leave you exposed.
Review annually or when your business changes – If you expand services, hire staff, change structure or take on larger clients, your insurance needs evolve.
Fraser Bond offers value beyond standard insurance advice. Our expertise for financial planners includes:
Understanding how your advisory business operates within London’s high-value client market and regulatory environment.
Reviewing your insurance policy documents to ensure cover is appropriate and aligned with your risk profile.
Advising on how insurance enhances your credibility with clients, platforms and networks.
Integrating insurance with your broader business strategy—growth planning, client segmentation, service-offering expansion.
With our support, you secure not just insurance cover, but confidence that your business is protected, compliant and client-ready.
If you operate a financial planning or advisory business in London or the UK, and want to ensure your insurance is properly structured, visit FraserBond.com or contact our London advisory team today for tailored guidance on insurance for financial planners, professional indemnity, cyber liability and how to ensure your advice business is resilient and protected.
