As an MGA, you occupy a unique position. You’re not brokers, and you’re not an insurer – but you do hold delegated authority, make underwriting decisions, and often manage claims within your authority.
For a long time, MGAs have been placed under standard insurance broker Professional Indemnity (PI) wording, usually with a binding authority extension add-on. While this has been the default approach, it has never truly reflected how you operate, the responsibilities you hold, or the risks you carry.
That’s why we chose to develop an exclusive PI facility for MGAs, backed by A‑rated insurers. It’s built on a fit‑for‑purpose wording that aligns with your delegated authority responsibilities, your regulatory obligations, and the operational factors you manage every day.
Why do traditional broker wordings fall short?
As an MGA, the main uncertainty you face is whether traditional PI wordings genuinely match your risk profile or whether they’re simply a workaround that leaves gaps in cover.
One of the biggest weaknesses in traditional broker PI wordings, even with a binding authority extension, is the requirement to notify insurers every time you add a new binder mid‑term. In theory, it sounds simple. In reality, it creates unnecessary exposure.
Imagine this scenario:
You secure a new binder during the year. It’s added mid‑term, but due to workload or simple oversight, it isn’t declared immediately. A claim or circumstance then arises on that binder.
Under a standard broker wording, you could find yourself with a declined claim because:
The binder wasn’t declared, and
The extension only applies to binding authorities disclosed at inception or notified mid‑term.
In this situation, you’re left exposed – not because of poor practice, but simply because the wording wasn’t designed for how MGAs operate.
What makes our wording different?
Under our MGA‑specific wording, all binding authorities including those added mid‑term are automatically covered. This removes:
The admin burden of notifying insurers every time you add a new binder
The risk of uninsured exposures caused by oversight
The operational strain for MGAs who regularly take on new binders
This is PI cover built around your workflow, your delegated authority, and your exposures – not a broker wording with a bolt‑on extension.
Why choose our exclusive facility?
Our facility was built specifically for MGAs. The key advantages include:
A‑rated capacity dedicated solely to MGAs
Tailored wording designed around your delegated authority operations
Cover for underwriting, claims handling, and all activities disclosed in your proposal from at renewal
Clearer definitions to reduce ambiguity at claims stage
Competitive pricing through exclusive market access
Continuity of capacity – essential for long-term MGA stability
It’s a purpose‑built solution for a sector that we feel has long been underserved, and one that reflects the operational reality of MGAs.
Talk to us
We, along with our insurer partners Liberty Mutual and Allianz Insurance, are proud of the PI product we’ve developed for MGAs. It’s a solution designed to support a wide range of MGAs across the market and provide the protection you need.
If you would like to arrange time to discuss any of the points raised, or if you would like an overview of the facility, please contact our dedicated MGA team (opens a new window).
