Insurance Limits

For firms declared in default on or after 3 July 2015

Protection is at 100% where claims:

(a) arise in respect of a liability subject to compulsory insurance; or

(b) arise in respect of a liability subject to professional indemnity insurance; or

(c) arise from the death or incapacity of the policyholder due to injury, sickness, or infirmity;

Protection is at 90% where claims arise under other types of policy with no upper limit.

No protection is available for Goods in Transit, Marine, Aviation and Credit Insurance. Contracts of reinsurance are also not protected.

 


For Firms declared in default before 3 July 2015 and on or after 1 January 2010

Claims for compulsory insurance  (e.g. third party motor and employers liability) are protected in full. 

Protection is at 90% where claims arise under other types of policy with no upper limit.

No protection is available for Goods in Transit, Marine, Aviation and Credit Insurance. Contracts of reinsurance are also not protected.


For Firms declared in default on of after 1 December 2001 and before 1 January 2010

Claims for compulsory insurance (e.g. third party motor and employers liability)  are protected at 100% 

For claims under other types of policy the maximum level of compensation is 100% of the first £2,000 plus 90% of the remainder with no upper limit.

No protection is available for Goods in Transit, Marine, Aviation and Credit Insurance. Contracts of reinsurance are also not protected.

 


Firms declared in default before 1 December 2001 were managed under the Policyholders Protection Act 1975 and the following protection was limited to :

Claims for compulsory insurance (e.g. third party motor and employers liability) are protected in full. 

Claims from individuals or partnerships were protected at 90%.

 


General insurance advice and arranging

The maximum level of compensation for claims against firms declared in default on or after 29 April 2016 is 100% of the claim, with no upper limit.

The 100%-limit applies, for example, to claims in respect of:

•     professional indemnity insurance; pure protection contracts;

•     pure protection contracts;

•     general insurance claims arising from the death or incapacity of the policy-holder, owing to injury, sickness or infirmity.

The 100%-limit also applies to advice and arranging of compulsory insurance.

The maximum level of compensation for claims against firms declared in default on or after 1 January 2010 is 90% of the claim, with no upper limit, and 100% for compulsory insurance.

The maximum level of compensation for claims for business conducted on or after 14 January 2005 and against a firm declared in default before 1 January 2010 is 100% of the first £2,000, plus 90% of the remainder. 

 


Long-term insurance (e.g. pensions and life assurance)

The maximum level of compensation for claims against firms declared in default on or after 3 July 2015 is 100% of the claim with no upper limit.

The maximum level of compensation for claims against firms declared in default on or after 1 January 2010 and before 3 July 2015 is 90% of the claim with no upper limit.

The maximum level of compensation for claims against firms declared in default before 1 January 2010 is 100% of the first £2,000 plus 90% of the remainder. 

 

Please contact us for more details.


The FCA

The Financial Conduct Authority website includes a searchable database of all firms authorised and regulated by the FCA and the Prudential Regulation Authority (PRA).

The FOS

The Financial Ombudsman Service is the official independent expert in settling complaints between consumers and financial businesses

What We Cover

Here you'll find information about what we cover, our compensation limits, and get answers to some of the most frequently asked questions.

Jargon Buster

  • In default

    A firm unable, or likely to be unable to pay claims against it. This will generally be because it has stopped trading and has insufficient assets to meet claims, or is in insolvency.