The call follows revelations that there are serious concerns from within the FSA that some firms may not be adequately covered.
Sally Laker, managing director of Mortgage Intelligence, said: “There are two things that brokers need to check about their PI.
“Firstly, what is the excess? Some policies have an excess of £10,000 which is ridiculous because at the moment the maximum that a mortgage broker has to pay out is between £5,000 and £7,000.
“There is also the issue of run-off cover. Some networks are insisting that brokers pay for up to 15 years.”
And an industry source who wished to remain anonymous said: “The FSA has expressed concern that some mortgage brokers have PI which does not cover regulated business.
“There is a view that some of the PI insurers may have been a bit sharp when selling policies to mortgage firms, mainly because of the incredible demand for this kind of policy.”
Bill Warren, director of the Complete Network, said: “It is quite difficult to see what some brokers PI actually covers, though it would appear that some are saddled with having to pay rather onerous excess should they need to claim and there is also a problem with run-off cover if they decide to change networks.”
Warren encouraged all ARs to ask their networks for the exact details about their PI cover.
