What type of insurance are insurance intermediaries required to hold?

Professional indemnity insurance is specifically designed to cover professionals against claims of negligence or inadequate performance of their professional duties. Insurance intermediaries, such as brokers or agents, often provide advice or recommendations to clients regarding insurance products. As a result, they face the risk of being held liable for mistakes, omissions, or negligence in their professional activities.

This type of insurance provides coverage for legal costs and any settlements or damages awarded to clients if they claim that the intermediary's service caused them a financial loss. It is crucial for maintaining client trust and protecting the intermediary’s professional reputation.

The other types of insurance mentioned do not provide the same level of specific protection for the professional duties of intermediaries. For example, public liability insurance typically covers claims made by the public for injuries or damages on the premises or due to the activities of a business, but it does not cover negligent advice. Similarly, professional liability insurance is a more general term that may not specifically cater to the needs of insurance intermediaries, while public indemnity insurance is not commonly recognized in the standard terminology for insurance coverage in this context.