PI provider scales back on DB cover following FOS award hike

Continuing cover for other business

Hannah Godfrey
clock • 2 min read

Professional indemnity (PI) insurance provider Collegiate has questioned whether it will continue to insure defined benefit (DB) transfers following the FOS compensation limit increase.

In an email seen by Professional Adviser, the PI provider confirmed all of its active policies would provide full indemnity cover for any Financial Ombudsman Service (FOS) awards up to the new £350,000 limit. It said, however, it could not extend this cover to complaints about DB transfers arranged after 1 April 2019 - the date the FOS award limit increased. For current Collegiate policyholders wishing to continue arranging DB pension transfers after 1 April, the insurer said it would "consider" providing cover for the increased FOS limit, subject to the completion of a questionnaire....

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