Connective Group Professional Indemnity Insurance Policy
Help protect your business with our comprehensive Group Professional Indemnity (PI) Insurance Policy.
about the policy
The Connective Group PI Policy has been negotiated on behalf of all Connective credit representatives in our efforts to continue providing you with the best possible support and protection.
COMPREHENSIVE
coverage
Broad Coverage for your business to give you peace of mind.
better
coverage
Enhanced coverage, providing you with greater protection and peace of mind
minimal
administration
Auto-participation if you’re already a member of the Connective Group PI Policy, with a simple approval for new applicants.
streamlined
administration
Auto-participation if you’re already with ProRisk means you can enjoy continuous coverage without the administrative burden
equitable
pricing
Cost of the policy is passed on to credit representatives with consideration of the nature/size of their business making it equitable.
more equitable
pricing
We’ve restructured how we pass on the cost of the policy to ensure a more equitable sharing amongst our credit reps
dedicated
support
Our Compliance team are available to assist you if a potential claim arises.
dedicated
support
Auto-participation if you’re already with ProRisk means you can enjoy continuous coverage without the administrative burden
key features
PI cover with $10M single cover, $20M in aggregate. As always, we will monitor the usage of cover and top up if required although our claims history indicates this is sufficient with plenty of buffer.
Minimal admin with automatic inclusion and renewal if you are already a member of the Connective Group PI Policy and a simple approval process for new applicants.
In the event of a claim, a Member excess contribution will apply (excess will depend on the relevant claim)
No gaps in coverage around LVR or credit impairment.
In-house support from our compliance team if a potential claim arises.
what's not covered
Like the current Group PI Policy and any other PI policy you may have obtained in the past, the policy does not cover public liability, laptop or cyber insurance. If you require cyber cover, please find more information on the Cyber Security Hub. For public liability or laptop cover, please reach out to support@insurance.com.au.
Cover is limited to activities you undertake as a Connective Credit Representative (outlined below) and will not cover any other business activities you undertake. You will not be covered for activities that are not permitted or are in breach of your member agreement or credit representative agreement with Connective.
pRicing
We’ll cover the premium to the insurer for the Group PI Policy and we will invoice you monthly for your annual participation fee.
With the new Group PI Policy commencing in October, any adjustments to the participation fee applicable to your partner group will be communicated to directors by email. Fees relating to the 26/27 Group PI Policy will be reflected in November 2026 invoice, which is issued in the last week of October. The PI participation fee for each partner group is determined based on the commissions earned by that partner group in the last financial year (regardless of the number of loan writers in that business).
We believe this is an equitable way in sharing the cost of the Group PI Policy amongst our credit representatives. This also reflects how an insurer would charge finance brokers seeking insurance (as they use revenue as an indication of risk exposure).
frequently asked questions
We do not hold an Australian Financial Services Licence and any advice on insurance is general advice only and not based on any consideration of your objectives, financial situation or needs. If you have any further queries around the Group PI Policy, please contact us via email at compliance@connective.com.au.
What activities are covered by Connective’s Group PI Policy
The Group PI Policy will provide coverage for activities you undertake as a Connective credit representative. These include:
- Mortgage Broking
- Finance Broking
- Mortgage Administration
- Verification of Identity for Arranging Finance
- Third Party Referral Services
- Mentoring Brokers
If you conduct any activities outside those listed above, please contact compliance@connective.com.au who will be able to discuss and review this with you to ensure your interests are fully covered.
You will not be able to access the Group PI Policy if the activities or conduct are not in accordance with, or breach the terms of, your member agreement or credit representative agreement with Connective. Examples include where the law has been broken or if you engage with an off panel lender without first obtaining Connective’s approval.
You will not be able to access the Group PI Policy if the activities or conduct are not in accordance with, or breach the terms of, your member agreement or credit representative agreement with Connective. Examples include where the law has been broken or if you engage with an off panel lender without first obtaining Connective’s approval.
I provide other services in addition to finance broking. Will they be covered by the Connective Group PI Policy?
If these services do not fit within the categories above, the Connective Group PI Policy will not cover those additional services. You may need to arrange separate PI insurance for those services. If you have any questions, please reach out to compliance@connective.com.au.
What are the key features of the Connective Group PI Policy?
Some of the key features of the Group PI Policy are:
- Automatic participation for credit representatives who are insured under the Existing Group PI Policy. No further action is required.
- A simple application process for new Members, which is processed in house by the Connective team.
- PI insurance coverage up to $10 million for any one claim, $20 million in aggregate.
- If an issue, such as a complaint, gives rise to a claim, a simple claims process, managed with support from Connective’s compliance team.
- A Member excess contribution of $2,500 will apply in the event of a claim (unless the claim arises in relation to a loan greater than $10 million, or that Member has had a claim in the prior calendar year, in which case a $10,000 excess contribution will be required).
How does participation in the Group PI Policy impact my obligations under my Connective Credit Representative Agreement?
You are still bound by the terms of your Connective Credit Representative Agreement while participating in the Group PI Policy. This includes adherence to all regulatory requirements and Connective policies.
As an appointed Credit representative under Connective’s Australian Credit Licence (ACL) you are obliged to obtain approval before submitting any applications to non-panel lenders. Details of the off-panel lending process can be found here. If the claim relates to activity which does not comply with the terms of the Connective Credit Representative Agreement, you may not have access to cover under the Group PI Policy.
As an appointed Credit representative under Connective’s Australian Credit Licence (ACL) you are obliged to obtain approval before submitting any applications to non-panel lenders. Details of the off-panel lending process can be found here. If the claim relates to activity which does not comply with the terms of the Connective Credit Representative Agreement, you may not have access to cover under the Group PI Policy.
Who is the insurer underwriting the Group PI Policy?
A result of our ongoing relationship with insurance brokers MKM Partners, the 26/27 Group PI Policy has been sourced directly from Lloyd’s of London, underwritten by a consortium led by Antares (antaresglobal.com).
For what period does the 26/27 Group PI Policy apply?
26/27 Group PI Policy is effective from 4.00 pm Local Standard Time, 29 October 2026 until 4.00 pm Local Standard Time, 29 October 2027. (The Existing Group PI Policy expires on 29 October 2026 so no need to do anything).
You can email compliance@connective.com.au or richard@mkmpartners.com.au to confirm that the Group PI Policy remains current.
You can email compliance@connective.com.au or richard@mkmpartners.com.au to confirm that the Group PI Policy remains current.
How do I participate in the Connective's Group PI Policy?
Firstly, only brokers operating as credit representatives under Connective’s ACL can participate. If you operate under your own ACL or an ACL other than Connective’s, you are required to obtain your own PI insurance from an insurer of your choosing.
If you are a Connective credit representative, currently insured under the Existing Group PI Policy, you do not need to do anything. You are automatically covered under the 26/27 Group PI Policy.
If you are a new Connective credit representative, your application for cover will be processed by our onboarding team. You will be required to answer only a few simple questions.
If you are a Connective credit representative, currently insured under the Existing Group PI Policy, you do not need to do anything. You are automatically covered under the 26/27 Group PI Policy.
If you are a new Connective credit representative, your application for cover will be processed by our onboarding team. You will be required to answer only a few simple questions.
I am happy with my current PI policy or insurer and do not want to participate in the Connective Group PI Policy. What are my options?
We believe that a group PI insurance arrangement will deliver the best outcome for our credit representatives from a risk management perspective. We believe the coverage under the Group PI Policy is strong and meets all the requirements of a finance broking business. On this basis, participation in the Group PI Policy is automatic for Connective credit representatives unless otherwise advised.
If you still wish to obtain your own PI insurance (or need additional coverage due to non-finance broking activities you engage in), you can at your own cost.
If you still wish to obtain your own PI insurance (or need additional coverage due to non-finance broking activities you engage in), you can at your own cost.
How will I pay for my insurance?
We take out the Group PI Policy on your behalf. This means that Connective pays the premium at the start of the policy period. Payment of the participation fee assures your coverage under the Group PI Policy.
A participation fee for each partner group is determined based on the commissions earned in the prior financial year (regardless of the number of loan writers in that business). We believe this is an equitable way of sharing the cost of the Group PI Policy amongst our credit representatives, reflecting how an insurer would charge finance brokers seeking insurance (using revenue as an indicator of risk exposure). The participation fee is an annual amount which will be invoiced monthly.
A participation fee for each partner group is determined based on the commissions earned in the prior financial year (regardless of the number of loan writers in that business). We believe this is an equitable way of sharing the cost of the Group PI Policy amongst our credit representatives, reflecting how an insurer would charge finance brokers seeking insurance (using revenue as an indicator of risk exposure). The participation fee is an annual amount which will be invoiced monthly.
How will we calculate what your commissions are for the purposes of determining my PI participation fee?
We will look at all commissions we have processed for a partner group over the 25/26 financial year (i.e., 1 July 2025 – 30 June 2026). This will take into account all upfront, trail and asset finance commissions (including clawbacks incurred during the period) that we have received and then on-paid to you. However, for the purposes of these calculations, we will not take into account Connective membership fees (regardless of whether you are on a maximiser, variable or CAF only fee plan).
Why has my PI Participation fee changed?
Participation fees charged up to October 2026 relate to participation in the 25/26 Connective Group PI Policy, which expires on 29 October 2026.
With the commencement of the new Group PI Policy, updated Participation fees for the 26/27 Group PI Policy will be communicated to Directors by email and commence in your November 2026 Invoice.
Pricing tiers for the 26/27 Group PI Policy are communicated to Directors. In addition, your participation fee tier is reflective of a difference in the commissions earned by your partner group in FY24/25 and FY25/26.
With the commencement of the new Group PI Policy, updated Participation fees for the 26/27 Group PI Policy will be communicated to Directors by email and commence in your November 2026 Invoice.
Pricing tiers for the 26/27 Group PI Policy are communicated to Directors. In addition, your participation fee tier is reflective of a difference in the commissions earned by your partner group in FY24/25 and FY25/26.
How did Connective come up with the PI participation fee?
Connective and its current insurance broker, MKM Partners, have conducted extensive research around the cost of brokers obtaining PI insurance at different revenue levels. We have used this research in conjunction with the cost of the 26/27 Group PI Policy to determine the PI participation fee. We believe that this is the most equitable way of sharing the cost of the group policy as cost to each business is proportionate to the level of activity and risk exposure.
Will my PI participation fee change if my volumes increase or decrease?
No. Once set, the PI participation fee will apply for the duration of the 26/27 Group PI Policy. Future pricing will depend on what PI arrangements are put in place after October 2027.
Will my PI participation fee change next year?
We have maintained the cost of PI cover at the same level for the past two years. Despite our efforts to keep costs down, the cost of PI cover will increase slightly for the upcoming year.
The other factor that will impact your PI participation fee is your level of activity over the past financial year and whether your revenue has increased/decreased.
The other factor that will impact your PI participation fee is your level of activity over the past financial year and whether your revenue has increased/decreased.
How and when will I receive my policy documents?
As the 26/27 Group PI Policy is a group policy arrangement, you will not be specifically named on the certificate of currency/proof of insurance. Connective is the policy holder and your entitlement to be covered arises either as a result of your participation in the Existing Group PI Policy or your application to participate in the Group PI Policy. Confirmation of cover will be emailed to you on commencement of the policy. Further information or assistance is available, free of charge, on request. Please contact us for assistance at compliance@connective.com.au. Alternatively, you can contact our insurance broker directly at richard@mkmpartners.com.au.
If a new broker joins my business after 29 October 2026, what do I need to do to ensure that broker is covered by the 26/27 Group PI Policy?
Provided that new broker is a credit representative under our ACL, nothing. Confirmation of coverage will be provided as part of the Connective onboarding process.
How do I make a claim under the 26/27 Group PI Policy?
Reach out to your Compliance Support Manager or our compliance team at compliance@connective.com.au who will liaise with the insurer’s claims team for you.
What is the limit of indemnity for the 26/27 Group PI Policy?
$10 million for any single claim and $20 million in aggregate. This is considered more than adequate for our credit representatives, given aggregate claims made since Connective began operations (over 20 years ago) fall within this limit. However, rest assured that if there is any risk that we will exceed these limits, we will arrange additional cover for our credit representatives.
What does the 26/27 Group PI Policy not cover?
The 26/27 Group PI Policy only covers professional indemnity claims for the activities described above. As with other PI insurance policies, it does not cover public liability, laptop cover and cyber claims. If you require cyber cover, please find more information on the Cyber Security Hub. For public liability or laptop cover, please reach out to support@insurance.com.au for assistance.
Standard exclusions around committing or condoning fraud, dishonesty or illegal conduct also apply. You will also not be able to access the Group PI Policy if the activities or conduct are not in accordance with, or breach the terms of, your member agreement or credit representative agreement with Connective.
Standard exclusions around committing or condoning fraud, dishonesty or illegal conduct also apply. You will also not be able to access the Group PI Policy if the activities or conduct are not in accordance with, or breach the terms of, your member agreement or credit representative agreement with Connective.
What if cover ceases during the term or is not renewed?
We will let you know if the 26/27 Group PI Policy will not apply until 29 October 2027. We will also let you know if cover is likely to be cancelled or not renewed for 27/28 prior to the cover ceasing.
get in touch
Connective Compliance Team
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