Already being used by Fastcom and backed by Lloyds of London, the policy - available to any packager - has been instrumental in reassuring brokers.
Paul Brett, managing director of Fastcom, said: “Intermediaries have enough to worry about without being concerned that their packager is going to survive the current credit crisis.
"It is therefore understandable that some intermediaries have lost confidence in using packagers due to the fear that they will not receive their procuration fees. That is where our policy comes in.
"Without having to earmark large sums specifically to safeguard procuration fees, which some larger packagers have done, every packager can now take out our insurance policy which covers the broker against being unable to recover the fees due to them from the packager.”
“We are already receiving a lot of interest since we started marketing the policy and clearly packagers are keen to ensure that they do everything they can to improve confidence in the broker/packager partnership.”
