Overview

Camargue Comprehensive Broker Professional Indemnity protects against actions alleging a breach of professional duty as an intermediary.

As a broker in the short term insurance industry, navigating through the myriad of red tape and legislation that exist in today’s market can be daunting. Add to this the enormous responsibility of securing the best possible cover for your clients and one begins to ask, “Is it worth the risk?” - the irony of the question being obvious.

Short Term Insurance Brokers are acutely aware of the risks facing their clients but all too often the business risks that they themselves face, are overlooked. With stringent FAIS regulations, impending Consumer Protection legislation and increasingly demanding clients, any intermediary would be foolish not to take an inward glance at the risks facing their broking operation. Aside from the obvious professional exposures that invariably lead to litigation by clients, there are also several other exposures that warrant attention, namely:

• Potential litigation brought against the directors of the broking operation
  • These actions relate to the mismanagement of the company rather than the provision of advice to clients. In terms of the Companies Act, directors can be sued in their personal capacity by shareholders, SARS, employees and other interested third parties for failing to discharge their responsibilities with the necessary duty of care.
• Fraudulent activity, perpetrated by employees.
  • Most brokers sell fidelity guarantee cover to their clients but often disregard the potentially dishonest staff working under their noses. White-collar crime is on the increase in South Africa and few businesses can afford the consequences.
• The human resources minefield
  • The increased focus on accredited qualifications for employees means that employers in the insurance industry may have to make tough decisions when determining the future of employees that do not “make the grade”. A few trips to the CCMA for alleged unfair labour practices generally leave, not only a bad taste in the mouth, but also an empty bank account, in their wake.

Liability underwriters have generally provided fairly standard, professional indemnity packages, focusing solely on the claims arising out of the negligent advice, error or omission in discharging professional duties.

Very little attention, if any has been turned toward the compliance, fidelity, labour and corporate governance issues facing the modern day broker.

Camargue Underwriting Managers have changed that with Broker PI. This product sees all the key exposures insured in one packaged solution.

Camargue Comprehensive Broker Professional Indemnity covers:

• Professional Indemnity – protection against actions alleging a breach of professional duty as an intermediary
• Fidelity Guarantee – safeguards against the unfortunate consequences of employee dishonesty
• Employment Practices Liability – transfer of employment and labour related risks such as failure to employ, unfair dismissal, sexual harassment and discrimination
• Directors and Officers Liability – the most effective way to ensure that the personal wealth of your directors and owners are protected from litigation following alleged breaches of management’s fiduciary duties

Camargue Comprehensive Broker Professional Indemnity Insurance – managing, mitigating and migrating business risk for insurance professionals.