Terms of Business
Premier Commercial Limited of Stanhope House, 12 Stanhope place, Edinburgh EH12 5HH is authorised and regulated by the Financial Conduct Authority under firm’s reference number 303287, you can check this information on the FCA website at www.fca.org.uk/register or by telephoning the FCA on 0800 111 6768.
This document sets out the professional relationship between your business and ours and details the services we will provide you with. This is our standard agreement we intend to rely upon when we are handling your insurance business and if there is any aspect of this agreement you do not agree to you must raise it with us in advance of the inception of the insurance or within 14 days of inception if your business turnover is less than £2,000,000.
- About us
We are a managing general agent underwriting business insurance policies on behalf of certain underwriters at Lloyd’s and in the London Insurance Market. We are granted binding authority to perform certain acts on behalf of the underwriters including the pricing and administration of your insurance policy but this does not affect your right to claim or to make a complaint. We may also undertake an insurance broking service where it is appropriate for us to do so your behalf.
- Information we will need you to disclose
You have a duty under the Insurance Act 2015 to make a ‘fair representation of your insurance risk’ to your insurers. This duty requires you to disclose all information, facts and circumstances which may be material to the underwriting and subsequent acceptance of your insurance risk. You need to do so in a clear and transparent manner and not make any misrepresentations. Please refer to our document entitled ‘Your duty of disclosure – How to avoid unpaid claims.’
This is an ongoing requirement during the period of insurance and continuing to any renewal. You should consider if any change of circumstances or alteration to the facts disclosed might influence the acceptance decision. We will also make our own enquiries wherever possible and seek constructive dialogue with you to ensure the validity of your insurance cover.
- Choice of insurer
If we are able to provide insurance on a binding authority we will not offer an alternative insurance option. If we are unable to underwrite your risk on our binding authorities we may offer insurance from an insurer with which we hold agency facilities in this instance we will undertake a fair market analysis and advise you accordingly. If we are required to negotiate with an insurer on your behalf, in the interest of obtaining the most favourable terms available to you, you authorise us to provide insurers with the terms of the expiring insurance policy including the price and your pricing objective and any alternative terms we might have obtained.
We deal with insurance companies and Lloyd’s syndicates directly authorised by the Prudential Regulatory Authority and authorised and regulated by the Financial Conduct Authority or authorised and regulated by the Central Bank of Ireland and authorised and subject to limited regulation by the Financial Conduct Authority pursuant to the European Union (Insurance and Reinsurance) Regulations 2015. If this is not the case we will advise you accordingly and detail any consequential risks of doing so.
- Provision of advice
Subsequent to our undertaking an assessment of your demands and needs we will advise you on the insurance product we are recommending to you, and its suitability for your business, to the extent that you can make an informed choice whether to proceed with our offer. We will not advise you on legal, accounting, regulatory or tax matters and we recommend that obtain advice from relevant professional advisors. If you speak to one of our underwriters you will be doing so on an advised basis.
- Validity of offers / quotations
In advance of the inception or renewal of insurance cover we will provide you with a written offer clearly detailing the terms of the insurance to be provided, you undertake to read the offer and advise us if there is any aspect which you do not understand or require further clarification of. The offer will be valid for a period of thirty days or until accepted whichever is the sooner, unless advised otherwise in writing.
- Acceptance of terms
If you choose to accept our offer you will be provided with insurance documents containing a policy wording, a schedule of insurance and any relevant certificates of insurance. These documents will include conditions (things you must or must not do), exclusions and variations to the insurers standard cover. You undertake to carefully check, read and understand all documentation to ensure it meets with your requirements and advise us if there is aspect you require further clarification on, do not understand or any amendments or corrections you require to be made.
- How we are paid
In most cases we are paid by commission form the insurer, this commission may vary according to the amount of work we do on behalf of the insurer. We will disclose the amount of commission we are being paid by an insurer if you request we do so. In some instances we may charge a fee if the commission we receive is not commensurate with the amount of work we undertake on your behalf or if we do not receive a commission from the insurer. Where we underwrite on a binding authority we may be paid a profit commission if our operating loss ratio is within an agreed margin.
If we make a change or your insurance is cancelled mid-term which results in a return of premium we will retain any commission and/or fee to cover our administration and advisory costs. We will advise you of any amount we have retained.
- Premium financing
For the purposes of arranging premium finance, we act as a credit broker and in arranging premium finance, we are acting on behalf of and owe a duty to the premium finance provider. We work exclusively with Close Brothers Limited, trading as Close Brothers Premium Finance (‘Close’) to provide a premium finance facility to our insurance clients – a loan with Close is designed for the repayment of insurance premiums only. We will provide you with information about this payment option on a non-advised basis – i.e. we are not providing you with advice as to the choice of finance provider or the suitability of the premium finance product and you will need to make your own decision about whether to proceed. If you do elect to finance your premium payments via Close, we may receive a payment in return for the work that we undertake on behalf of the finance provider. Acceptance is subject to status and terms & conditions apply and Close may undertake an enquiry with a credit reference agency such as Experian when you make an application. The credit reference agency will add details of the search and the application to their record about you whether or not the application proceeds. Further details will be provided when an application for finance is made. Insurers own credit facilities may also be available if appropriate.
- How we will handle your money
In most cases the insurer which has underwritten the insurance will consider your insurance policy has been paid when you pay your premium to us under a risk transfer agreement. This provides you with the security that if our firm becomes insolvent before settlement of the insurance premium the insurer will bear the losses. If we do not have such an agreement with the insurer we will hold and retain any premium that you pay to us in a statutory trust account until it is settled with the insurer. If there is commission owing to us we undertake not to transfer it to our bank account until the insurer is settled.
We may need to transfer your money to a third party, this occurs if we must use the services of a Lloyd’s broker, another managing general agent or wholesale broker to obtain the insurance cover you require. We will undertake due diligence prior to undertaking such a transfer and, unless we advise you otherwise, we will accept responsibility for your money until the insurer is settled. If you do not wish us to use third party services you must advise us prior to the inception of any insurance or where appropriate within 14 days.
Your insurance policy may include a cancellation clause and you may have the right to cancel the contract. You may be able to claim a refund for any unexpired period of insurance. Your insurance policy may not permit a return of premium following cancellation and your insurer may retain the whole premium. Please check the policy wording for further information. Our commission is earned from the date the insurance cover commences and is not refundable in the event of cancellation, avoidance or early termination of the contract. If you are a consumer or a micro small to medium enterprise with a turnover of less than £2,000,000 you are permitted a period of 14 days ‘cooling off’ after the inception of the insurance cover during which you may cancel the contract.
All claims must be notified in accordance with the requirements of your insurance policy, please contact us immediately you become aware of any incident which may give rise to a claim and we can help you with the process of ensuring you meet your notification obligations. You need to be aware that any delay in notification may affect your right to receive indemnity from your insurers. You must not admit liability under any circumstances as your insurers will stand in your place under the terms of the insurance provided if an indemnity is granted. We will assist you in whichever way we are able to formulate and submit your claim and in bringing it to a conclusion without charge. In some circumstances your insurer may require you to communicate with a third-party claims administration company who handle claims on its behalf.
We will base our renewal offer upon the information we hold about you and that there has been no change to the insurance risk. Please contact us immediately if the information is not correct or there are changes you wish to make. Please also refer to our document entitled ‘Your duty of disclosure – How to avoid unpaid claims.’
We aim to provide you with a very high standard of service but sometimes things do go wrong. If you think that we have not met your expectations please contact firstname.lastname@example.org, this inbox is managed by our directors who will handle your complaint personally. The directors can be contacted on 0131 370 4340 or you can write to our directors at 1a Lansdowne Crescent, Edinburgh EH12 5EQ. If your complaint relates to your insurer then please refer to the section entitled ‘Complaints’ in your policy wording.
- Data protection
We act as the Data Controller. How we use and look after the personal information is set out in our Data Protection Statement which is included in your insurance pack. Information may be used by us, the coverholder, agents and service providers for the purposes of insurance administration, underwriting, claims handling or for statistical purposes. The lawful basis for the processing is that it is necessary for us to process your personal information to enable the performance of the insurance contract, to administer your policy of insurance and/or handle any insurance claim you may submit to us under this policy. The processing of your personal data may also be necessary to comply with any legal obligation we may have and to protect your interest during the course of any claim.
The information you have provided is treated as confidential and only disclosed during the process of negotiating, arranging and administering your insurance.
- Limit of liability
Our liability to you is limited to £5,000,000 arising out of or in connection with this agreement. This limit does not apply to any liability which cannot lawfully be limited.
- Entire agreement
- These Terms of business constitutes the entire agreement between us and supersedes and extinguishes all previous agreements, (including but not limited to any Terms of business agreement that may have been previously sent to you by us), promises, assurances, warranties, representations and understandings between us, whether written or oral, relating to its subject matter. You acknowledge that in entering into these Terms of business you cannot rely on, and shall have no remedies in respect of, any statement, representation, assurance or warranty (whether made innocently or negligently) that are not set out in these Terms of business. You agree that you shall have no claim for innocent or negligent misrepresentation or negligent misstatement based on any statement in these Terms of business. Nothing in this clause shall limit or exclude any liability for fraud.
No variation of this Agreement shall be effective unless it is in writing, expressed to amend this agreement and signed by or on behalf of each of us.
No right, authority or obligation arising under it may be delegated, assigned, transferred or otherwise disposed of, in whole or in part, by either of us without the prior written agreement of the other, such consent not to be unreasonably withheld or delayed.
These Terms of business may be cancelled by either party by giving 14 days’ notice in writing to the other. You will remain liable to pay for any transactions or adjustments effective prior to termination and we shall be entitled to retain any and all commission and or fees payable in relation to insurance cover placed by us prior to the date of written termination of our authority to act on your behalf.
- Third parties’ rights
A person who is not a party to this agreement has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this agreement. This clause shall not affect any right or remedy of a third party which exists or is available apart from that Act.
- Money laundering
You agree to provide such evidence and information about your identity, and that of your associates, as we may reasonably require in order to comply with our obligations under money laundering legislation and regulations and associated Proceeds of Crime Act. We are obliged to report to the National Crime Agency and/or appropriate law enforcement agencies any evidence or suspicion of financial crime at the first opportunity and we are prohibited from disclosing any such report.
- Anti-bribery and corruption
The parties agree that Bribery, as defined under the Bribery Act 2010, is prohibited. It is therefore agreed that neither party will request, accept, offer or provide any payment or other advantage, to or from any person, which, in the absence of documentation to demonstrate otherwise, can be perceived as capable of influencing any person connected with the activities of either party to act improperly in contravention of the Bribery Act 2010. It is also agreed that neither party will offer or provide payments or any other advantage to a government official or worker, in any country, with the intention to influence such official or worker in their capacity as such, and to obtain or retain a business advantage
- Trade sanctions
Notwithstanding clause 21, we reserve the right to suspend or terminate these Terms of business (in whole or in part) where we believe performance could be a breach of applicable economic or trade sanctions. We will not provide insurance or reinsurance broking, risk consulting, claims or other services or provide any benefit to the extent that the provision of such services or benefit would violate applicable law or expose us or our affiliates to any sanction, prohibition or restriction under UN Security Council Resolutions or under other trade or economic sanctions, laws or regulations.
- Applicable law and jurisdiction
These Terms of business shall be governed and construed in accordance with the laws of Scotland. In relation to any legal action or proceedings arising out of, or in connection with, these Terms of business unless otherwise agreed we both irrevocably submit to the jurisdiction of the Scottish courts.