TERMS OF BUSINESS – COMMERCIAL INSURANCE
Please read this document carefully. It contains important information which the Financial Conduct Authority requires us to give you and should be used to decide if our services are right for you.
Please contact us if there is anything in this document which you do not understand or with which you disagree.
In this document we outline our commitments and obligations to you and detail the quality of the service that you can expect from LOSS Insurance Services Ltd. We also provide details of what we require from you to ensure that the insurance cover we arrange on your behalf is appropriate for your requirements.
We are an independent insurance intermediary, registered number 09133862, and are authorised by the Financial Conduct Authority (FCA) to handle non-investment Insurance Contracts under reference number 679901 and this can be verified by visiting the FCA’s website (https://register.fca.org.uk ) or by contacting the FCA on 0800 111 6768. In addition we are authorised under the Consumer Credit Act by the FCA to conduct Credit Broking.
We will advise you in every case whether we give advice or not.
If we say we give advice we will advise you and make a personal recommendation after we have assessed your insurance needs.
If we say that we do not give advice you will not receive advice or a recommendation from us. We will provide information only and you will have to decide whether the product is suitable and meets your needs
To be clear and fair, we will always tell you if we are giving you a recommendation or simply providing you with information for you to make your own choice.
We will explain the main features of the products and services that we offer you, including details of the provider, period of cover, main details of cover and benefits and any significant or unusual restrictions, exclusions, conditions, obligations or warranties.
We carry out ‘fair analysis’ of the market to identify a suitable product. This means that we compare products from a large range of insurance providers in terms of cover, price, quality of service and other relevant features in order to select the right policies for you.
However in certain circumstances our search for a product to meet your requirements may involve a limited number of Insurers. (You can ask us for a list of the Insurers we use), or we may only offer a product from a single Insurer.
To access the insurance product that most suits your needs, we may use another Insurance Intermediary to help place your business.
However we will always advise you how we have selected the product and whether we have used another Intermediary. We do not guarantee the solvency of any insurer we place business with.
Making a claim
You are responsible for notifying claims or circumstances which may give rise to a potential claim and should contact us immediately following any incident. Failure to notify in accordance with your policy requirements may lead to insurers rejecting your claim.
We will assist you with any claims that arise under the insurance policies that we have arranged. We will ensure that Insurers are notified promptly and in accordance with their requirements for any incident which may give rise to a claim. We will assess claims promptly and will advise you of any information or documentation which is likely to be required by your insurers. We will advise you immediately we become aware that a claim may be restricted or rejected and will forward any claim payments received from insurers without delay.
Your insurance contract may include a cancellation clause, but cancelling a policy may work out expensive for you, so please speak to us first. In some cases, there may be very little refund and in fact you may have to carry on paying your instalments. If there has been a claim under the policy, there will not be a refund. Our charges and those of the Insurers are not refundable and we do not refund the commission paid to us for arranging the policy.
Your obligations and duty of disclosure
You have a duty to make a fair presentation of the risk to the Insurer.
A fair presentation is one that discloses, in a manner that is reasonably clear and accessible, every material circumstance that is known or ought to be known by an Insured’s Senior Management, or those responsible for arranging the insurance, following a reasonable search.
Reasonably clear and accessible has not been defined in the act, but relates to any presentation or statement that you or we make to Insurers regarding the risk.
Material Circumstance is a circumstance that would influence the judgement of a prudent insurer in determining whether to take on a risk and if so on what terms.
Known or ought to be known includes knowledge which is actually known or which should be known following a reasonable search.
Senior Management includes individuals who play significant roles in making decisions, not just the directors and board
Those responsible for arranging the insurance includes Employees within an organisation who arrange the insurance as well as third parties, including us, your Insurance Broker, and other Professionals that may advise you, or have knowledge of your business.
Failure to provide a fair presentation could lead to your policy being cancelled from inception or when the inaccuracy was discovered and Insurers not refunding any money nor paying a claim; or a claim payment being reduced, substantially.
If you have any doubt whether something should be included in the fair presentation, you should disclose it. If you need any help or information about this, you should ask us.
Therefore you have a duty to answer all questions honestly and accurately and to disclose any fact or circumstance which is (or could be) material to the risk being placed. A fact or circumstance is material if it could influence the judgement of an Insurer in fixing the premium or deciding whether to accept the risk.
In addition to answering all questions honestly and accurately, you must also inform us of any changes to your policy details during the life of your policy, including at renewal.
Insurance is based on the information that you give to the insurer and if this information changes, your premium may go up or down. If the Insurers are not fully informed or if the information you give them is wrong, then they will be entitled to refuse any claim. They might also be entitled to keep any premium you have paid.
For your protection, Insurers maintain databases to prevent fraud and the information you give us may be subject to checks.
You should read through all policy terms, conditions and warranties shown on your policy documentation and advise us immediately of any aspects which you do not understand, or of any policy requirements with which you feel you may not be able to comply.
Protecting your money
We hold your premium payment in a statutory trust client money bank account. This means we keep client money separate from our own money by paying it into a client money trust account. We may only use the money held in trust on behalf of a customer for paying that customer’s premium to an insurance company and to pay premium refunds or claims we receive from the insurance company to that customer, once the money has been received from the insurance company. We are not allowed to use that customer’s money to pay another customer’s premium or refund and any interest earned on client money held by us will be retained by us for our own use.
We are committed to transparency in our relationship with you and will seek to achieve a fair level of remuneration, commensurate to the work we undertake on your behalf. In most circumstances we are paid a proportion of the insurance premium by your Insurers. This is commonly known as brokerage (or commission). Details will be provided upon request. From time to time we may agree a fixed fee with you instead of brokerage, or a combination of both.
We also make service charges over and above the charges made by your Insurers to cover our administration costs. We also make charges for mid-term changes, cancellation or voiding, such charges as shown below, however these may be increased but you will be advised of these in advance.
- New Policy Inception £25
- Policy Renewal £25
- Mid Term Policy Adjustments £25
- Cancellation within the “cooling off period” £25
- Cancellation after the “cooling off” period £40
- Returned Cheques and Direct Debit Defaults £25
In the event of termination or voiding of a policy we may be required to repay to the Insurer a proportion or all of any commission earned and this will be deducted from any amount returned to you.
As part of our agreement with various Insurers, we may also (in addition to commission received on individual policies) receive additional income. This is generally based on a level of business transacted with an Insurer and incorporates agreed standards of performance including overall premium income, loss ratio and accounts payments. Such income is based on overall performance and not identifiable to individual clients. We may also receive commission income from Third Party Finance providers and other professional relationships.
You are entitled, at any time, to request information regarding any commission, which we may have received as a result of placing your insurance business.
Insurance Premium Tax and in some cases VAT is charged and should the rate increase between quotation and effective date, any difference will be met by the policyholder.
Policy documents will be issued in a timely manner and will confirm the basis of cover and details of the insurer(s). They will include a policy summary and details of when the premium is due.
A statement of demands and needs will confirm whether the contract has been personally recommended and if so, the reasons for making that recommendation.
We aim to provide you with renewal terms no less than 21 days before expiry of the policy and any mid-term changes to your policy will be provided in good time, prior to the change(s) taking effect.
Please read all policy documents carefully and inform us immediately of any incorrect information shown. If you have difficulty understanding anything, please let us know and we will assist you.
We will keep your personal data safe at all times and in accordance with the Data Protection Act 1998. Your data may be used for marketing purposes to offer you other goods or services. If you do not wish this, you can opt out at any time by contacting us on 01606 601000.
We do our best to provide you with the highest levels of customer service at all times, however, should you wish to make a complaint you should do so with our Customer Complaints Manager . You can do this in writing to Customer Complaints Manager, LOSS Insurance Services Ltd, Suite G5 Northwich Business Centre, Meadow Street, Northwich, CW9 5FP, by email to email@example.com or by telephone on 01606 601000 detailing the nature of the complaint.
If we are unable to resolve your complaint by close of business on the third working day following receipt, an acknowledgement will be sent no later than 5 working days after receiving your complaint confirming who is dealing with the complaint and when we will expect to respond to you. Within 8 weeks of the date we receive a complaint we will provide you with our final decision.
If you remain dissatisfied you may be able to refer your case to the Financial Ombudsman Service, South Quay Plaza, 183 Marsh Wall, London E14 9SR, telephone 0845 080 1800, 0300123 9123 or fax 020 7964 1001.
By making a complaint, you do not prejudice your rights to any legal proceedings.
Treating you fairly
Our aim is to treat all customers fairly. Whenever we deal with you we will work hard to ensure that the information we give is clear and understandable. In the event that something does go wrong we aim to put things right where we have made a mistake.
Third Party rights
Unless otherwise agreed between us in writing, no term of this agreement is enforceable under the Contracts (Rights of Third Parties) Act 1999.
Financial Services Compensation Scheme
We are covered by the FSCS. You may be entitled to compensation from the scheme if we cannot meet our obligations.
This depends on the type of business and the circumstances of the claim and further information about compensation scheme Arrangements is available from the FSCS.
Limitation of our liability to you
We aim at all times to act in your interest, with due diligence and with the standard of care reasonably expected in the market in which we operate.
We have insurance which will cover us and provide security for our clients if we cause them loss through our negligence. This insurance cover is in accordance with the requirements of the Insurance Mediation Directive and the Financial Services Authority. We hereby however restrict our liability to you to the limit of this insurance cover.
By this clause, we restrict our liability to you for our negligence, for anything we do, or fail to do, to the sum of €1,120,200 (euros) for a single claim and €1,680,300 (euros) to you in the aggregate. Such sums will be automatically increased in line with the increase in the European Index of Consumer Prices, when required by the above directive.
This limit is in total and in respect of one or a series of related or unrelated transactions we carry out for you in our capacity as your Insurance Broker. The clause also applies to the negligence of any other party that we are legally responsible for.
- Does not apply nor restrict any liability in law in respect of death, or personal injury caused by or arising from our negligence.
- Does not restrict our liability to you in respect of fraud or fraudulent misrepresentation by us or our employees or agents.
- Does not seek to, nor does it affect any obligation we owe to you under the regulatory system applying to financial services, including the Financial Conduct Authority, FOS or under the financial services and markets act (FSMA).
- Is in respect of commercial customers as defined in the FCA handbook.
- Applies in respect of any claim against us as a body corporate.
- Applies equally (and to the same limit in total) to any claim or action taken against our directors, employees partners, consultants or those under a contract of (or for) services with us.
By agreeing to do business with us you expressly accept this limitation, and understand that it may not be amended without confirmation from us in writing.
- You understand and agree that the provisions of this clause also apply to any claim you direct against an employee, director, partner, consultant or other individual connected with us in accordance with the
Contracts (Rights of Third Parties) Act 1999 and therefore commit not to take separate or joint action against them.
Your acceptance of this Terms of Business Agreement
This Terms of Business shall be deemed to be an undertaking and acknowledgement by the Customer(s) of their acceptance to all the terms and conditions set out herein.
Our services may be terminated by either party, giving one month’s notice in writing to the other, or as otherwise agreed. In the event our services are terminated by you, we will be entitled to retain any and all fees or commissions due.
Please note that the Terms of Business are subject to English Law and any dispute is subject to the English Courts.