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All your network questions answered by the industry&#39s leading experts

If I join a network, do I still have to pay for my own PI insurance?

Andy Young is head of mortgage services at Sesame

Yes, although the network is likely to have in place special arrangements to ensure its professional indemnity insurance cover is highly competitive.

Chris May is director at Mortgage Times

Network contracts vary so much that it is impossible to look at the network proposition as one thing. You will need to look into each of the contracts offered by the networks and decide which best suits you.

John Lee is head of sales and marketing at Genesis Home Loans

This will depend on the network you join. The PI policy of the network will have to cover your activities. It may require you to pay a proportion of the premium or the cost of PI might be included within the overall fees it charges.

Stephen Atkins is group compliance director at Freedom Finance

Significant differences may develop between networks and their requirements for PI cover. Larger networks with assets exceeding £1m or with a group guarantee are exempt from the FSA&#39s PI rules and may take a flexible approach.

Kean Seager is chairman of the Whitechurch Mortgage Network

Networks supply the PI for you but the ways of paying for it vary. Some networks weight the payment according to the perceived risk associated with the member&#39s business – others simply include the PI as part of the overall fee.

Michael Ward is managing director of Enable

I am sure networks will be happy to accept applications from those previously directly authorised but they will probably expect you to maintain your own run-off PI cover for regulated activities prior to joining them.

Nick Battersby is group compliance director at Trustguard Home Loans

Many networks will offer group discount policies with competitive premiums and it will be a mandatory requirement to take cover with the same insurer as your principal. Some networks will pay for this on your behalf.

Stanley Lovell is group executive chairman of IN Partnership

It depends on the network you join. What is important with PI is whether it includes &#39run-off&#39 cover. If it doesn&#39t you can be liable for claims indefinitely should you leave the network.

Chris French is managing director of the Mortgage Marketing Centre

It depends on the contract. One advantage of being an AR is not worrying about PI cover. Also, if the network deals with complaints and it&#39s your PI, what incentive is there for it to settle for a small sum?

Richard Griffiths is managing director of Network Data

Some networks include cover in their monthly charge whereas others will deduct PI costs in addition to the regular charge. Of course, with some you will be left to arrange your own cover.

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