Our terms of business is a little comprehensive - but it is aimed to protect you as a consumer and us as an insurance broker.
This page will detail where you stand as a customer and how our terms of business will affect you and any insurance policy you may have.
As such, it is always crucial that you always provide us with accurate information when you apply for a policy as failing to do so may result in it being void.
Definitions and Interpretations
In this Terms of Business the following words shall have the following meanings:
- "We, Us, Our, Ourselves" means the company known as Hammond Professional Indemnity Consultants Ltd.
- "Services" means the services and/or work to be performed by Us for You.
- "I, You, Your, Yourself" means the party to these Terms other Hammond Professional Indemnity Consultants Ltd.
Information about Us
Hammond Professional Indemnity Consultants Limited (co. reg. 04799687) is trading at the address:
37 Temple Street,
England, B2 5DP
whose registered office address is:
502 -504 Dudley Road,
England, WV2 3AA
is authorised and regulated by the Financial Conduct Authority (FCA). Our firm's Registration Number is 302911.
We are permitted to arrange, advise on, deal as an agent of Insurers and assist in Claims handling with respect to non-investment Insurance policies. You can check these details on the FCA's Register by visiting the FCA's website www.fca.org.uk/register or by contacting the FCA on 0800 111 6768 (freephone) or 0300 500 8082 from the UK.
Ownership of Us
There is no ownership between Us and any Insurer.
Providing information to Your Insurer
Your insurance is based upon the information provided to the insurance company. Unless otherwise indicated by the specific Insurer underwriting Your particular Policy, the following circumstances apply.
For Consumers (individuals buying insurance wholly or mainly for purposes unrelated to their trade, business or profession) this means that You must take reasonable care to answer all questions fully and accurately. Once cover has been arranged, You must immediately notify Us of any changes to the information that has been provided to Your Insurers. Failure to provide accurate and up to date information may invalidate Your insurance cover and mean that a Claim may not be paid.
All other customers must present the risk (i.e. the subject matter of the proposed insurance) fairly. This means that You must disclose to Insurers, before arranging or renewing Your insurance Policy, and throughout the Policy period, 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 (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. Failure to disclose material information may invalidate Your insurance cover and could mean that a Claim may not be paid or an additional premium may be incurred.
All statements and facts disclosed on proposal forms, statement of facts, Claim forms and other documents should be full, true and accurate. 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.
If any information supplied changes during the course of the Policy period or setting up process, You musty notify Us and/or the Insurer as this may influence the cover and Policy terms and conditions. Failure to disclose material information may invalidate Your Insurance and could mean that part, or all, of a Claim may not be paid.
Terms relating to confidentiality
We agree to keep all information provided by You to Us confidential, save that You authorise Us to:
- 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 the making of Claims;
- 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.
Awareness of Policy Terms
When a Policy is issued You should read it carefully. The Policy together with the Schedule, Certificate of Insurance and "The Statement of Fact" (where applicable) form the basis of the contract of Insurance. If You are in any doubt over any of the Policy terms conditions or warranties then contact Us immediately.
Our Service to You
Professional Indemnity, D&O and EPL
We specialise in Professional Indemnity Insurance (PII) and its associated Insurances. We offer Products from a range of Insurers for Professional Indemnity Insurance, Directors and Officers Insurance (D&O) and Employment Practice Liability Insurance (EPL). The Products quoted and offered to You are from a fair analysis of the Insurance market. We have access to a wide range of providers so are able to discuss Your needs and to establish a Product best suited to You.
Other Insurance Products
Whilst We specialise in PII, We are able to offer certain other General Insurance Commercial Products when requested, however, We only offer these Products from a limited number of Insurance providers or may refer such enquires to another Broker or division within the Company.
Online Facility via Our Website
We also offer Products direct from Our website from specific Insurance providers. Online quotes are offered on a Direct Offer Basis and are subject to the Website "Terms of Business". You should ensure any Products purchased Online meet Your needs and requirements.
Our Quotation to You
We will quote all premiums net and gross of Her Majesties Government Insurance Premium Tax or the tax to be applied in the EU country where the Policyholder is resident. We reserve the right to withdraw premiums and premium indications before they are taken up and to apply any changes notified to Us by underwriters after they have been given. All quotations have a time limit after which they may require re-quoting. This is usually 21 days, unless otherwise stated.
Subjectivities and Evidence of Facts
In consideration of being granted Insurance cover under a Policy on the basis of providing evidence of Claims or other subjectivities You undertake to provide such evidence within ten days before the commencement date or an agreed timescale.
If You do not provide such evidence, You must pay any increases in premium as a result. Insurers also reserve the right to cancel the Insurance cover ab initio or offer amended terms if the subjectivities are not forthcoming within this timeframe or to Insurers satisfaction. We also maintain the right to make a charge or to retain any commission to cover the administration involved in both placing the Policy and cancellation.
How to Cancel
You may have a Statutory Right to cancel a Consumer Insurance Policy within a short period. Where Statutory Rights to cancel can be exercised You will receive a pro-rata refund of Premium from the Insurer (subject to no Claims being made). We may also keep an amount that reflects Our administrative costs of arranging and cancelling the Insurance. Please refer to Your Policy document for further details.
Statutory Rights to cancel do not apply for Commercial Policies, & Cancellation Terms will vary between Insurers. In the event of a cancellation an administration fee of £48 will be charged in addition to any brokerage earned. We do not refund commission since this is earned for arranging the Policy (unless You are replacing the Policy through Our agency with another Insurer). We cannot guarantee that Insurers will agree to any Cancellation.
Claims Handling Arrangements
You should take note of the required procedures in the event of a Claim, which will be explained in the Policy documentation. Generally, Insurers require immediate notification of a Claim or Circumstances which might lead to a Claim. We will employ due care and skill if We act on Your behalf in respect of a Claim. In the event of a Claim You should NOT admit liability or take any action which could prejudice Your Insurer's position or their ability to investigate a Claim; enter into any Claims correspondence; settle or offer a payment; disclose Insurers involvement; disclose any details of Your Insurance Policy.
Claims will be notified to Insurers between Business Hours: 9am & 5pm from Monday to Friday (excluding bank holidays). Some Insurers stipulate that acceptance of any notification must be received by their own Claims Department before confirming Indemnity. If Your Policy expires outside of business hours and You have a Claim to notify, We will not be responsible for any matters NOT accepted by Insurers. If You have an urgent matter, please contact Us by telephone to discuss the position in the first instance.
We reserve the right to charge £75 per hour for the handling of any outstanding Claims which were notified to Us should the Insured/You no longer have a live Insurance Policy with the Us with the exception of where You are no longer trading.
We want to draw your attention to the following important changes to your existing policy cover that will become effective upon renewal of your policy. At renewal your existing policy will be replaced with a revised wording.
When does the Insurance Act come into force?
The Insurance Act 2015 came into force on the 12th of August 2016 and changed the way the law deals with the duty of disclosure for commercial insurance contracts. The purpose of the Act is to update the current law to reflect the way in which the insurance market has evolved in modern times with the aim being to achieve a fair and balanced regime between insurers and Policy Holders.
What you need to do?
Under the Act insurance contracts will still be based on good faith and you will have a duty to make a fair presentation of the risk to insurers which will include disclosure of:
- Every material circumstance which as an insured you are expected to know or ought to know about the risk for which you are seeking insurance; or
- Sufficient information to put a prudent insurer on notice that it needs to make further enquires to revel those material circumstances.
The core information we ask for as part of proposal forms or insurance submissions (such as claims information or asset value) will continue to lie at the core of a Fair Presentation and should be completed as accurately and fully as possible.
In addition to answering our questions, you must flag ‘special or unusual facts’ about the risk. These will be unique to your business but could for example include:
- Recent or planned business developments such as new products and services, acquisitions, customers or contracts, which will affect your risk profile.
- Changes in business operations, which might not be fully explained in the standard underwriting information such as business units with different working practices.
- Operational factors which make your business different from competitors or industry standards.
- Known issues where you already have a concern about the potential for increased risk in future.
- For all changes it is important to describe the circumstances and what you think the risk impact could be.
You must ensure that any information you provide is correct to the best of your knowledge and subject to you having conducted a reasonable search for information. This could require you to obtain or verify information with a number of sources who may hold or have access to important information about your business or the insurance risk.
This may include key decision makers or those with responsibility for arranging your insurance (including us as your broker) or other parties that carry out outsourced functions for your business such as (but not limited to):
- Senior managers and those with accountability for managing functions relevant to the risk
- Persons normally involved in arranging insurance for the organisation
- Risk managers, outsourced contractors and service providers
- Persons covered by the insurance e.g. co-insured or sub-contractors
- Employees who may have in-depth or specialist knowledge on processes and procedures
What happens if I make a misrepresentation?
In the event that you make a misrepresentation of information which is considered to be deliberate or reckless i.e. you were aware that you were making a misrepresentation or did not care whether or not you were misrepresenting the risk, an insurer will be allowed to avoid your policy, which means that any claims you make will not be met and no refund of the insurance premium will be made and an Insurer may recover any amounts that they have paid or claim any expenses that they may have incurred.
If however you make a misrepresentation of information which is not deliberate or reckless i.e. you appropriately carried out your duty to make a fair presentation but made an honest mistake or omission then the remedy available to the Insurer depends on what they would have done had the full information been available to them when the policy was taken out. There are a number of remedies which may be applied by the insurer to achieve a fair outcome:
- If the insurer can prove that it would not have written the policy at all, the insurer can cancel the policy from inception but must return the premiums paid.
- If the insurer would have entered into the contract but charged a higher premium, the insurer may reduce proportionately the amount to be paid on a claim. Some Insurers may opt to charge the appropriate additional premium rather than exercise this option.
- If the insurer would have accepted the risk but on different terms, the contract is to be treated as if it included those terms.
Warranties & Terms
A warranty is a term in an insurance contract which must be strictly complied with. The Act also includes changes to the way that the law deals with insurers rights in the event of breaches of warranties and terms. These changes will affect both commercial and personal insurance contracts.Clauses which have the effect of turning representations made by you into a warranty will be prohibited under the Act.
An insurer will no longer be able to avoid a policy where a breach of warranty occurs; instead cover will be suspended for the period that you are in breach of the warranty. This means that where it is possible you may be able to remedy the breach of warranty and continue with the insurance policy; However Insurers will not be responsible for a loss during any period where cover was suspended for a breach of warranty.
The insurer cannot avoid a policy or limit or discharge its liability for non-compliance with any terms which are not relevant to the loss or did not increase the risk of loss which has occurred.
An insurer may wish to contract out of certain elements of the Act subject to your understanding and agreement and we will advise you of the implications of this should the situation arise.
The Act will come into effect in August 2016 and we will be in touch to discuss your insurance requirements in good time before your renewal date, in the meantime you should start to think about how the changes will affect you, such as what information you may need to disclose, who holds this information within your business and how you might capture it. As your insurance broker you can rest assured that we are on hand to help you understand your obligations under the Act and to guide you through the process of gathering the information required to make a fair presentation. We will undertake to present this information to insurers on your behalf in a way which is clear and accessible.
0333 222 4257
0330 024 9375
Hammond Professional Indemnity Consultants Ltd
37 Temple Street,
Birmingham B2 5DP.
Hammond Professional Indemnity Consultants Ltd are authorised and regulated by the Financial Conduct Authority. Ref No. 302911. Hammond Professional Indemnity Consultants Ltd Insurance Company Limited is registered in England No. 04799687.