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Professional Indemnity Insurance for Motor Dealers
Motor dealers offering finance and insurance advice alongside vehicle sales carry professional liability for that advice.
Why it matters
Why motor dealers need Professional Indemnity
- FAIS requirements apply where finance and insurance advice is given.
- Advice errors can result in client financial loss claims.
What does Motor Dealer PI cover?
- ✓Claims arising from alleged negligent finance or insurance advice.
- ✓Defence costs in responding to professional negligence claims.
Common exclusions
- –Deliberate or fraudulent acts.
- –Product liability for vehicles sold.
Real scenarios
Common Motor Dealer PI claims
Finance and insurance advice disputes
Claims linked to alleged unsuitable finance or insurance product advice.
How much PI cover does a motor dealer need?
Limits should reflect annual finance and insurance sales volumes.
What affects the premium?
- Annual turnover
- F&I sales volume
- Claims history
What information insurers require
- • Annual turnover
- • F&I sales volume
- • Claims history
Retroactive cover
Retroactive date should reflect when F&I advice services began.
Run-off cover
Run-off cover matters if the dealership closes.
FAQ
Frequently asked questions
Where finance and insurance advice is given under an FSP licence, adequate PI cover is generally required.
Get your Motor Dealer PI quote
One simple online application, tailored to how motor dealers actually work.
Related professions
Related covers
- Public Liability →
Covers dealership premises liability.