Terms of Business Agreement
This document details our service and our arrangements for dealing with Your insurance. Please read it carefully and retain a copy for Your records. The English language will be used for all communications, the contractual terms and conditions, and any information We are required to supply to You, before and during the duration of the contract and this agreement shall be subject to English Law
The Financial Conduct Authority
The Financial Conduct Authority is the independent watchdog that regulates financial services. Arthur Marsh & Son (Birmingham) Ltd is authorised and regulated by the Financial Conduct Authority under register number 461971. You can check our status at https://register.fca.org.uk or by contacting the FCA on 0800 111 6768. Our permitted business includes advising, arranging, dealing in and assisting with the placing & administration of General Insurance policies.
Use of Personal Data
We are committed to protecting your personal information. We will use personal information about you fairly and lawfully, primarily in connection with the provision of insurance. Full details can be found in our Privacy Notice at www.arthurmarsh.co.uk which specifies the information we may collect on you and from whom, how and why we use this information, how we may share and disclose the information and the retention of your data. In some instances we may need to seek your consent before processing such data. We will always make it clear to you when and why we are seeking your consent. A hard copy of the Privacy Notice is available on request.
Arthur Marsh & Son (Birmingham) Limited – Data Protection Officer, 50 Fenchurch Street, London, EC3M 3JY.
We are an independent insurance intermediary, who acts on our customers’ behalf in arranging insurance, including: assessing Your insurance needs and Recommending policies suitable for you; arranging Your insurance cover with insurers to meet Your requirements; and helping You with any ongoing changes You have to make. We typically offer advice from a range of insurers, representing a fair analysis of the market, which means that We will have compared products from a sufficiently large range of insurance providers in terms of cover, price, quality of service and other relevant features in order to select appropriate policies for You. However, under certain circumstances We may only deal with a limited panel, or single insurer or We may use another, specialist, intermediary to access the insurance product that most suits Your needs. We will always inform You where this is the case.
We will advise and make a personal recommendation for you after we have assessed your demands and needs. Our advice will be confirmed in a demands & needs statement, giving reasons for our recommendation. In respect of Legal Expenses/Motor Breakdown, you will not receive advice or a recommendation from us and you will then need to make your own choice about how to proceed.
Our Service in relation to the provision of Premium Finance
We are a credit broker, not a lender. We only offer the credit facilities of insurers and/or Close Brothers Premium Finance. We may use providers who will conduct a credit check and share your payment record with other lenders, all of which may be recorded on Your credit record. Please contact us if You do NOT consent to a credit check being undertaken, however this may affect our ability to offer instalment facilities to You.
Please Note: Your policy cover will cease if You fail to keep up payments on an instalment agreement or premium finance facility related to it and Your credit rating may be affected. In entering into a credit agreement to pay Your insurance premium, You give the finance provider the legal Right to cancel Your insurance policy on Your behalf in the event that You default on the loan, and offset any refunded premium against the outstanding amount owed to them. This means that if You default on Your payment terms and the finance provider requests that We cancel Your policy, We will do so as Your agent.
Information on how We treat Payments You make to Us
Under the terms of our agreements with the Insurance companies with whom We place business, We normally receive premiums You pay to us as Agent of the Insurer. All insurance premiums You pay to us are protected in a Statutory Trust Client Account until We pay insurers. We do not pay any interest on premiums held by us in the course of arranging and administering Your insurance.
Bad Debt Recovery
You agree to fully indemnify Arthur Marsh & Son (Birmingham) Ltd in the event of a default or none payment of premium. We will instruct the Courts/Sheriff’s Office against all third party costs together with our fee in the recovery of the debt.
We normally accept payment by Bacs, Cheque or the following credit/debit cards – Visa, Mastercard, Maestro. You may be able to spread Your payments through insurers’ instalment schemes or a credit scheme, which We have arranged with an established insurance premium finance provider, however rates and acceptance may be subject to a credit check. We will give You full information about Your payment options and the appropriate finance agreement when We discuss Your insurance in detail.
We are covered by the Financial Services Compensation Scheme (FSCS) For Commercial customers with less than £1m turnover, insurance advising and arranging is covered for 90% of the claim, without an upper limit. For compulsory insurances (for example, motor insurance and employers’ liability insurance), insurance advising and arranging is covered for 100% of the claim, without an upper limit. Further information about compensation scheme arrangements is available from the FSCS.
What to do if You have a complaint
Our aim is to provide a first class service, however, if You wish to register a complaint, please contact us by writing to Mark Farren, Arthur Marsh & Son (Birmingham) Ltd, Cambrai Court, 1231 Stratford Rd, Hall Green, Birmingham, B28 9AA or, by phone 0121 778 2044.
If You cannot settle Your complaint with us, You may be entitled to refer it to the Financial Ombudsman Service, for an independent assessment and opinion. The FOS Consumer Helpline is on 0800 023 4567 and their website is at: www.financial-ombudsman.org.uk, Or you can contact them by post at: Financial Ombudsman Service, Exchange Tower, London E14 9SR
All incidents which could lead to a claim must be reported as soon as practicable. Contact us in the first instance during our working hours 9am to 5pm Monday to Friday or out of these hours your insurer’s claims contact number which is shown in Your policy documents.
IMPORTANT INFORMATION FOR PERSONAL LINES CUSTOMERS (CONSUMERS) ONLY
Your Responsibility to provide information
You must take reasonable care to answer all questions honestly and to the best of your knowledge, and if you volunteer any other information, you must ensure that the information is not misleading. If any information that you have provided to us changes before you take out your insurance, during the life of the policy or at renewal, you must inform us of the change. If you deliberately, recklessly or carelessly misrepresent any information in relation to this insurance then your policy may be cancelled without refund, or treated as if it never existed, or your claim rejected or not fully paid.
Our Fees and Charges for the services We provide to You
We usually receive a commission, which is taken from the amount you pay, on the insurance and premium finance with whom we place your business. Insurer commission could typically be up to 25% and we also make the following charges to cover the administration of your insurance:
Arranging new policies £30.00
Mid term adjustments £30.00
Arranging new Breakdown Policy £10.00
Renewal Breakdown Policy £10.00
Mid-term cancellations and other refunds are paid NET of commission and in addition we charge an administration fee of £30.00
Personal lines/Retail policies cancelled during the ‘Right to Cancel’ period will be subject to an administration charge of £30.00, in addition to the premium charged by the insurer for the period of cover provided.
Occasionally we may arrange a policy on which we earn no commission and in these cases we will advise you of the arrangement fee before you take the policy out. We may also make additional charges specific to the arrangement and servicing of certain policies, but these will always be advised to you in advance.
Your Right to Cancel
You have a legal right to cancel your policy or credit agreement for any reason, subject to no claims having occurred, within 14 days of receiving the full terms & conditions. You will always be advised where this Right applies. A charge will apply for the period of cover provided and, in addition, we make an administration charge as detailed above. If you cancel a credit agreement you will need to repay any sums provided in full and make alternative arrangements to pay your premium. If you cancel after the 14 days, short-period cancellation rates apply. If you wish to cancel a policy you must advise us in writing, prior to expiry of the 14-day cancellation period, to our usual office address.
INFORMATION FOR COMMERCIAL CUSTOMERS ONLY
Our Service and Obligations to You:
We will conduct a fact-find to evaluate Your insurance needs with the member of Your business that You choose to nominate as Your Insurance Contact, who will be responsible for ensuring that Your disclosure obligations to insurers are met.
Your Responsibility to Provide Information:
You have a duty under the Insurance Act 2015 to make a fair presentation of the risk to insurers. This duty applies when You take out Your insurance cover, throughout the life of Your policy, and when You renew Your insurance.
This duty includes a need for Your nominated Insurance contact to undertake a reasonable search for material information which is known, or ought reasonably to be known, by Your company’s principals, directors, senior management (ie. anyone playing a significant role in making business decisions in Your firm) and staff responsible for insurance.
You should advise Us of any particular concerns which led You to seek insurance cover and any special or unusual facts relating to the risk.
You must ensure that all material statements of fact are substantially correct and not misleading, and any material information which is a matter of expectation or belief (eg. an estimate or forecast) is provided in good faith.
Failure to disclose any material information or change in circumstances to Your insurers which could influence the cost, or their decision to accept Your insurance, could mean that Your policy could be invalidated or cancelled without refund, or that part or all of a claim may be not be paid.
‘Material statements’ and ‘material information’ are information which could influence the judgement of a prudent insurer in determining whether to take on a risk and on what terms.
Our Fees and Charges for the services We provide to You
We usually receive a commission from the insurer which is taken from the premium You pay to Us and, in addition, We normally make the following charges to cover the administration of Your insurance:
Arranging new policies £50.00
Mid term adjustments £30.00
Mid term cancellations and other refunds are refunded NET of commission. We may, in addition, charge a £30.00 administration fee.
We may also receive additional remuneration based on the volume or profitability of our account with an insurer. 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.
Occasionally We may arrange a policy on which We earn no commission and in these cases We will advise You of the arrangement fee before You take the policy out. We may also make additional charges specific to the arrangement and servicing of certain complex commercial policies, but these will always be advised to You in advance.
Cancellation of this Agreement
This agreement will remain in force unless cancelled by either party in accordance with the terms below or You have no insurance business placed through Us. You may cancel the agreement at any time, subject to notification in writing to our usual office address. In the event of cancellation, We shall be entitled to retain any commissions and fees earned prior to the date of cessation of the agreement in full. We have the right to cancel this agreement subject to one month notice in writing to your last notified address.
Sums Insured and Indemnity Limits
You will be responsible for ensuring that all sums insured and indemnity limits are adequate for the cover requested. We will advise You of the basis of calculation for sums insured and will, on request, give You details of external experts, such as surveyors and valuers, which You may wish to consult. The following information on calculating business interruption sums insured is given for guidance, but you should always seek specific advice from us if you are in any doubt as to what should be included.
Business Interruption / Loss of Profits Insurance
Several types of cover exist; Gross Profit basis (usual for manufacturers, retailers etc); Gross Revenue basis (normally for consultants, professions); and Increased cost of working basis, for businesses that believe there would be no loss of profit or revenue in the event of a claim, but would need to cover increased trading costs until the claim is settled.
‘Accounting Gross Profit’ and ‘Insurance Gross Profit’ are not the same thing.
Where your policy includes this cover, the Sum Insured for ‘Gross Profit’ should normally be calculated using the following method:
Annual turnover plus year-end stock and work in progress; less opening stock (and work in progress) and purchases, bad debts and uninsured variable expenses (such as the purchase of raw materials or shipping costs)
Gross Revenue insures the total turnover without deductions and Increased Cost of Working is based on projected additional costs of temporary relocation and other forecast additional costs. Business interruption sums insured should then be adjusted to take into account the indemnity period (eg. doubled for 2 years indemnity period)
In the event of under-insurance, Insurers may reduce the amount of any claim settlement in the same proportion as the sum insured bears to the total value of the insured items.