TERMS OF BUSINESS AGREEMENT – INSURANCE BROKING
UK & Global Insurance Brokers Limited 7 Weyman Road, London SE3 8RS is an independent Insurance Broker. UK & Globsal Insurance Brokers Ltd is an Appointed Representative of Garratts Insurance Brokers Ltd. Garratts Insurance Brokers Ltd is authorised and regulated by the Financial Conduct Authority (FCA). Our permitted business includes arranging general insurance contracts. Our FCA Register number is 477440. These details can be checked on the FCA’s Register by visiting the FCA’s website at http://www.fca.org.uk/ or by contacting the FCA on 0800 111 6768.
Please read this document carefully. It sets out the terms on which we agree to act for you, our client, and contains details of our regulatory and legal responsibilities. Please contact us immediately if there is anything in these Terms of Business which you do not understand. By doing business with us you agree to do so on the terms of this document unless we both agree otherwise.
As an independent insurance intermediary we act as the agent of our client. We are subject to the law of agency, which imposes various duties on us. However, in certain circumstances we may act for and owe duties of care to other parties. We will advise you when these circumstances occur so you will be aware of any possible conflict of interest.
We offer products from a range of insurers and service providers and conduct a fair analysis of the market on your behalf. We will provide you with a list of these insurers if you request this.
We will advise and make recommendations for you after we have assessed your demands and needs. This will include the type of cover you seek together with the costs.
Upon receipt of your written or oral instructions we will place insurance with your chosen insurers and keep you informed of the progress of our negotiations. We will assist you in the administration of your insurance contracts or as otherwise separately agreed in writing. We will explain to you the main features of your insurance contracts. In accordance with your instructions we will renew your insurance contracts.
We will advise you of any inability to place your insurance. These are our core services.
Insurers are subject to regulation. They are required to have adequate capital resources. We do not guarantee the solvency of any insurer we place business with. An insolvent insurer may be unable to pay a proportion or all of any claim made and you may have to pay a further premium to pay for alternative insurance cover.
Policy documentation will be issued to you in a timely manner and as soon as reasonably possible. If an insurer’s standard policy wording is substantially different from the rest of the market then we will explain to you the significant differences and draw your attention to any onerous terms. You must comply with the terms and conditions of your insurance policy, especially any terms described as warranties and or conditions precedent to liability. Failure to do so could result in your policy being cancelled and or in a claim or claims not being paid. Your insurance policy may create ongoing duties for you which you must continue to carry out. For example, a duty to disclose any change in circumstance that the insurers may regard as material to the ongoing insurance arrangements, your obligation to notify vehicle changes in accordance with the requirements of the Motor Insurance Database and the discourse of your Employer Reference Number (ERN) for the Employers Liability Tracing Office. If you do not, insurers may cancel your policy or refuse to deal with any claim or claims and in respect of the Motor Insurance Database you may be liable to prosecution. Documentation including your policy and certificate (if applicable) will be issued to you after receipt from insurers. In the event of delay, at your request, we could provide you with a specimen or standard policy.
It is our policy to retain documents or copies of documents for business effected on your behalf in electronic or paper format for not less than three years. You must yourself retain certificates of Employers Liability insurance from 31/12/1998 forwards, for a period of 40 years after their expiry date. You should retain records of Employers Liability insurance prior to 31/12/1998 if you can. This is to safeguard your business against claims for industrial disease or illness which may have developed throughout an employee or former employee’s working career.
In the event of an incident which could give rise to a claim you must tell us as soon as possible. If you do not, an insurer may refuse to deal with your claim or reduce the amount that you receive from them. We will provide you with assistance in submitting any claim unless we agree otherwise. We will help you to obtain settlement from insurers unless we agree otherwise. In the event that an insurer becomes insolvent or delays making settlement we do not accept liability for any unpaid amounts.
DUTY OF DISCLOSURE TO INSURERS
For covers incepted, renewed or added mid-term on or after 12 August 2016. Your insurance is based upon the information provided to the insurance company.
Unless you are a Consumer (an individual buying insurance wholly or mainly for purposes unrelated to their trade, business or profession) you must present the risk (i.e. the subject matter of the proposed insurance) fairly. This means that you must disclose to insurers, before the setting up or renewal of your insurance policy is concluded, anything that might influence the judgement of an insurer in fixing the premium, setting the terms or determining whether they would take the risk. If you are uncertain whether anything is material, you should disclose it.
In order to identify what must be disclosed, you are obliged to carry out a reasonable search before presenting the risk to insurers. This includes (but is not limited to) consulting with all senior managers. A senior manager is anyone who plays a significant role in the making of decisions about how your activities are to be managed or organised, regardless of whether or not that individual is a member of your board or is formally in a management role. You must also consult with anyone who has particular knowledge about the risk to be insured.
If you deliberately or recklessly (ie without care) fail to comply with your obligations to present the risk fairly, insurers may avoid the policy. This means they can retain all premiums and treat the policy as if it never existed and refuse to make any claims payments. You could also be obliged to repay any claims payments that had already been made. If you fail to present the risk fairly, but your failure was neither deliberate nor reckless, insurer’s response will depend upon what would have happened if you had complied with your obligations:
- a) if insurers would not have provided the policy, they may treat the policy as if it never existed, refuse to make any claims payments and demand the return of any claims payments already made. However, insurers would have to return any premium payments already made;
- b) if insurers would have provided the policy but on different terms, the policy will remain in force but will be treated as if those different terms applied from the start of the policy. This could result in a claim not being met in part or in full;
- c) if insurers would have provided the policy but charged a higher premium, insurers may reduce any payment in proportion to the difference between the premium charged and the premium that would have been charged if you had fairly presented the risk. This could result in a significant reduction to the amount of any payment under the policy.
All statements and facts disclosed on proposal forms, statements of facts, claim forms and other documents should be full, true and accurate and must be given after undertaking a reasonable search, including consulting with your senior management. Where forms are completed on your behalf you must check them for accuracy and completeness before signing them. You must always read the declaration and make sure you understand it before you sign.
You must pay the premiums due in accordance with the amounts and payment dates specified on our invoices.
Failure to meet a payment date could lead to insurers cancelling your policy.
You may choose to pay by instalments. If you use a finance company such as Close Brothers or Premium Credit then this is an independent loan. If, for example, you decide to cancel a policy or your insurer becomes insolvent, you will still be required to make the agreed repayments. (If you do not continue to pay your instalments your insurance may be cancelled.)
We may at our discretion deduct any sum that you owe us from any amounts which we may receive on your behalf including but not limited to claims moneys or premium refunds.
If you are owed any premium refund, balances of less than £20 may be held to the credit of your account unless you say otherwise.
HOW WE ARE PAID
UK & Global offers bespoke Client Service Agreements to individual clients which include a Remuneration section in which details of the agreed Broker Fees, and the periods of insurance to which they apply, are stated.
If a bespoke Client Service Agreement is not in place then the standard basis of remuneration will apply. Similarly, If a Client Service Agreement was in place, but is not renewed, then the standard basis of remuneration will apply.
The standard basis of remuneration for UK & Global Insurance Brokers Ltd is detailed below.
You will pay us an agreed annual Broker fee for the provision by us of the agreed services.
Payment of the Broker Fee is to be made by you in full within 21 days of the Fee being payable or via an agreed Finance Facility such as provided by Premium Credit Ltd or Close Brothers Ltd.
UK & Global sometimes place insurance policies through the agencies of other Insurance Brokers, including Incepta Insurance & Risk Management Ltd, Miles Smith Ltd, Howdens Wholesale, Locktons Wholesale, Consilium Insurance Brokers and Garratts Insurance Brokers Ltd, who will normally receive a commission from the Insurer(s) involved. In such cases the premiums debited will include commission payable under the terms of the agencies of the relevant Broker(s).
UK & Global may sometimes also receive a commission from premiums for activities in respect of generating, gathering and evaluating information, separate to the annual Renewal process, for discussion with the client and/or for presentation to Insurers.
You will also have access to, and use of, the ClaimAble facility for each period of insurance provided UK & Global maintains the ClaimAble licence accordingly.
We will provide up to 5 hours of advice to you in respect of the Insurance and Indemnity clauses of each individual Contract between you and your clients within the agreed annual Broker fee.
Should any of the individual Contract reviews require more than 5 hours of our advice then we will charge you £125 per hour for each additional hour or part thereof.
UK & Global Insurance Brokers Ltd does not handle any client money.
All client money is received and handled by our FCA Principal, Garratts Insurance Brokers Ltd.
Client money is money that Garratts Insurance Brokers Ltd receive and hold in the course of carrying on insurance broking on behalf of our clients (including you) or money which they treat as client money in accordance with the client money rules. A copy of these rules is available on request.
Garratts Insurance Brokers Ltd hold client money subject to a statutory trust. This means they are not entitled to use client money held on behalf of one client to pay another client’s premium before the premium is received from that other client, and cannot pay claims and premium refunds to another client before they receive payment from the insurer. Garratts Insurance Brokers Ltd is not entitled to use client money to pay commissions before they receive the relevant premium from that client.
Garratts Insurance Brokers Ltd keeps client money separate from their own money. They maintain a separate client money bank account.
Any interest earned on client money held by Garratts Insurance Brokers Ltd will be retained by them for their own use.
We will not be liable to you for any loss resulting from the failure of any bank holding client money to meet its obligations as a result of insolvency or similar default.
Your insurance contract may include a cancellation clause. In the event that you fail to pay your premium by the due date, the Insurance may be cancelled forthwith, or by insurers giving notice of cancellation.
For buyers who are deemed to be “consumers” as defined by FCA regulations, you may have a right to cancel your policy. The cancellation period can vary but is (usually) 14 days from the date on which you receive your policy documentation. You may exercise your right to cancel without giving us any reason. If you do not exercise your right to cancel, the cover will remain in force for the agreed period. If you wish to exercise your right to cancel, you may do so in writing to UK & Global Insurance Brokers Ltd, Level 17, Dashwood House, 69, Old Broad Street, London. EC2M 1QS or by email to firstname.lastname@example.org.
If the insurance contract is cancelled and no claim has been made, the insurers may return a proportion of the premium to us, less any reasonable costs incurred in providing the cover. Our commission and or fees will not usually be refundable.
If the event of our position as Insurance Brokers to your company, we will continue to be entitled to receive any fees or commissions payable. We reserve the right to resign as your broker. If policies are to be cancelled, due notice will be given in accordance with the terms of the insurance policies. We will continue to fulfil any outstanding regulatory responsibilities to you following termination of these Terms of Business.
If you wish to complain to us then please contact James Garratt at email@example.com and 0207 786 6752. You can write to us at UK & Global Insurance Brokers Ltd, Level 17, Dashwood House, 69, Old Broad Street, London. EC2M 1QS.
We will issue a prompt written acknowledgement of your complaint. We will try to resolve your complaint as soon as possible. Our final response will state whether we accept or reject your complaint. If we reject your complaint, we will state our reasons. If we cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service (the FOS). This does not prejudice your right to bring legal proceedings. You can find more information about the FOS at www.financial-ombudsman.org.uk or by calling them on 0800 023 4567.
A copy of our full complaints procedure is available on request.
FINANCIAL SERVICES COMPENSATION SCHEME
We are covered by the Financial Services Compensation Scheme (FSCS). FSCS provides compensation, subject to type of business and circumstances of claim, where a company is not able to meet its obligations. Insurance advising and arranging is covered for 90% of the claim, without any upper limit. Full details are available from the FSCS at www.fscs.org.uk
MONEY LAUNDERING / PROCEEDS OF CRIME
We are obliged to report to the Serious Organised Crime Agency any suspicion of money laundering or terrorist financing activity and we are prohibited from disclosing any such report.
Claims payments will be made in favour of you.
We will treat all information as private and confidential and in strict adherence with the General Data Protection Regulations (GDPR) and Data Protection Act 2018. The requirement to share data with regulatory authorities etc may continue even if you are no longer a client. We will only retain personal data for as long as required and will take reasonable steps to ensure it remains up to date and secure.
You have a right to obtain a copy of any personal information that we hold about you and this can be requested at any time by writing to us at Camden House, 2 Camden Place, Preston PR1 3JL. No charge will be made for this.
We agree to keep all information provided by you to us confidential, save that you authorise us to:
- a disclose such information to insurers and their agents for the purposes of obtaining insurance quotations for you, placing insurance on your behalf and all other matters relating to your insurances, including arranging of premium finance or the making of claims. This may include obtaining quotations for policies that we have not previously discussed with you but that we feel may be of benefit.
- b share such information with our own insurers and professional advisors on terms that preserve confidentiality or where we are required by law or by order of the court to disclose such confidential information.
However, we will not be bound to keep any information confidential where it is or becomes in the public domain, it was already known to us or becomes known to us independently of you, or if you authorise us to disclose such information.
THIRD PARTY RIGHTS
Nothing in these Terms of Business will give any person any right to enforce any term which that person would not have had but for the Contracts (Rights of Third Parties) Act 1999.
LAW AND JURISDICTION
These Terms of Business shall be governed and construed in accordance with English Law and shall be subject to the exclusive jurisdiction of the courts of England and Wales.
Please be aware that telephone calls may be monitored and recorded.
Insurance premiums attract Insurance Premium Tax at the prevailing rate. Engineering inspections and some other services attract VAT at the prevailing rate. Some fees may not have a taxation element at all. If you are VAT registered then the VAT element may be recoverable by you. Insurance Premium Tax is not recoverable.
PROFESSIONAL INDEMNITY INSURANCE
We will maintain professional indemnity insurance in accordance with the requirements of the Financial Conduct Authority (the FCA). The limit of indemnity will be not less than £3 million.
We will use reasonable endeavours to act in accordance with your reasonable instructions. If we are not substantially able to achieve what you want us to achieve or if it is not possible to achieve what you want then we will tell you. We will tell you what we can achieve.
You may instruct us by fax, be email, by telephone or during face to face meetings. We cannot guarantee that your instructions have been received unless we have acknowledged them in writing. We reserve the right to refuse instructions but, if we do, we will inform you. Communications using the Internet are not completely secure and may spread harmful viruses. If you would prefer us not to use emails you must inform us.
Please note that office hours are Monday to Friday 9:00am to 5:00pm. The office is not open for business on statutory (“Bank”) holidays and also not open for business between Christmas Day and New Year’s Day. There may be delay in responding to instructions if they are received outside of office hours.
We do not ordinarily issue receipts or acknowledgements unless specifically requested by you in writing.
LIABILITY FOR DIRECTORS, OFFICERS OR EMPLOYEES
You acknowledge and agree not to make any claim personally against any employee, director or officer arising out of the work and services provided under these Terms of Business. This clause does not in any way limit or affect our liability to you as set out below.
Our staff at Garratts Insurance Brokers endeavour to give professional insurance advice. However, their advice and our service to you under these Terms of Business do not take into account Health and Safety Consultancy, or employment law considerations.
We can provide you with access to specialist staff in Health and Safety Consultancy, or employment law advice, at your request. In this event, Specialist Staff will work for you in accordance with a separate and more specific Terms of Business Agreement.
Insurance Broking staff can take instructions from you on Insurance Broking Services only. You must instruct Health and Safety Consultancy or employment law specialists directly. Insurance advice may differ from or conflict with other advice which you may receive. In this event, you need to let us know in order that we can help you deal with any such conflict or difference.
If any part of these Terms of Business is or becomes illegal, invalid or unenforceable then that part shall be deemed to be removed from these Terms of Business and shall not in any way affect the legality, validity or enforceability of the remaining Terms of Business.
Your rights and our rights under these Terms of Business may be waived if specifically agreed in writing by you and us but not otherwise.
Each of our rights or remedies is without prejudice to any other right or remedy we may have whether under a contract or not.
Our failure or delay in enforcing or partially enforcing any provision of a contract will not be construed as a waiver of any of our rights under a contract.