Commercial Insurance
Professional indemnity cover for mortgage brokers
The advice you give carries real financial weight for your clients — and real exposure for you. Professional indemnity cover is built for the duties and obligations of mortgage broking.
Why mortgage brokers need PI cover
A single oversight in a loan application can cost a client money — and come back as a claim against you. Common triggers include a missed disclosure, a misunderstood requirement, or an error in an application document.
What does mortgage broker PI cover?
Policies differ between insurers, but most are built around the specific duties of a broker.
Exclusions vary by insurer — your policy schedule will specify them.
- Claims of negligence or breach of duty in your advice
- Errors or omissions in loan applications and documents
- Legal costs of defending a claim
- Compensation and damages awarded against you
- Investigation and disciplinary proceeding costs
Tailored to your practice
Whether you're a sole trader, aligned with an aggregator, or part of a larger firm, your exposure — and your cover — should match how you operate.
From our clients
“Our dealings with KeyInsure have always been very friendly and helpful, also very quick response and professional advice. Pretty sure they save us money on our insurances also. Thank you.”
KeylendWho needs this cover
Professional indemnity is generally a licensing requirement for credit representatives and licensees, and aggregators typically require a minimum level of cover.
- Mortgage brokers operating under an aggregator
- Australian Credit Licence holders
- Credit representatives and authorised representatives
- Finance and asset finance brokers
- Brokerages employing several brokers
- Brokers adding new services such as commercial lending
What affects your premium
Mortgage broker PI is priced on your volume, your services and your history.
Loan volume and fee income
Premiums are usually based on annual commissions or settled volume.
Types of lending
Commercial, SMSF and construction lending are rated differently from standard residential loans.
Limit of cover
A higher limit costs more. Contracts and site requirements often set the minimum you need.
Excess
Choosing a higher excess usually lowers the premium; a lower excess raises it.
Claims history
Past claims — yours and, in some cases, the industry’s — affect what insurers offer.
Retroactive date
How far back past advice is covered. A longer retroactive period generally costs more.
Common questions
What level of PI does ASIC require?
Licensees are expected to hold PI that is adequate for their business. Aggregators and licensees typically set a minimum limit for their brokers, which we can confirm before quoting.
Does PI cover claims about a loan I arranged years ago?
If the policy’s retroactive date covers the period and the policy is in force when the claim is made, yes. Keeping cover continuous is what protects past work.
What happens to my cover if I change aggregators?
Some aggregators provide group cover; others require you to hold your own. When you move, we check what is in place so there is no gap.
Are AFCA complaints covered?
Many policies include costs of responding to external dispute resolution complaints, subject to the policy terms.
Related cover
Ready when you are
General advice only. Consider the relevant PDS & TMD before acquiring any product.