TERMS OF BUSINESS FOR ACCOUNTANTS

Transcription

1 TERMS OF BUSINESS FOR ACCOUNTANTS The Professional Indemnity Company Indemnity House 131 Main Road Broughton Chester CH4 0NR Tel: Fax: /06/15/AH Page 1 Version 2.2

2 INDEX 1 Introduction 2 Who we are and contacts 3 What we do 4 Personalised Quotation 5 Insurance Premium Tax (IPT) 6 Our Services 7 Finance Options 8 Money Laundering 9 Confidentiality and Data Protection 10 Anti-Bribery Policy 11 Limit of Liability 12 About our General Insurance Services 30/06/15/AH Page 2 Version 2.2

3 1. Introduction Thank you for allowing us the opportunity to quote for your insurance. Whether you are simply renewing a contract with us or about to enter into a new contract for the first time, we are very well aware of the importance of customer service, and will remain fully committed to you each year that you remain a customer of The Professional Indemnity Company. Customer Relationship Management is paramount to us as a dedicated arranger of Professional Indemnity Insurance. The relationship that you build with your dedicated Account Manager is vital for us to work together in partnership. Above all, our aim is to ensure you are as informed as possible when making decisions about your insurance. In these terms of business ( terms ), references to we, us and our are to Professionals for Professionals Limited trading as The Professional Indemnity Company. We recommend that you carefully read these terms they describe some important rights and safeguards you have under the Financial Conduct Authority s regulatory regime and are also the terms that will apply to our appointment by you. 2. Who we are The Professional Indemnity Company is the trading name of Professionals for Professionals Limited. Professionals for Professionals Limited is authorised and regulated by the Financial Conduct Authority, FCA Reference We specialise in arranging Professional Indemnity Insurance for Accountants, Architects, Solicitors and Surveyors. Collectively, we have over 50 years experience in dealing with the problems of professionals, handling claims, advising on risk management and all of the processes involved in setting up, acquiring and running a professional practice. More information on us and our documentation is available at 3. What we do Professional Indemnity Insurance As our name states our primary function is to arrange Professional Indemnity Insurance for the Professions. 30/06/15/AH Page 3 Version 2.2

4 Fidelity Insurance We can include alongside your policy Fidelity Insurance to provide financial compensation for losses that you suffer if an employee is fraudulent or dishonest, relating to situations where employees handle your money or property. Directors and Officers Liability Insurance If you are a Limited Liability Partnership, Limited Company or your partners have set themselves up as limited companies we can arrange a Directors and Officers Liability Insurance policy to provide directors and officers of the company with indemnity against a wide range of potential legal actions, which they may face in carrying out their management duties. The policy also provides for costs and expenses arising in connection with such actions. Persons appointed as directors or officers of a company hold positions of trust and are required to act accordingly. They are personally liable for any act, which is negligent, outside of their authority, or in breach of duty or trust. Before the Event Insurance/After the Event Insurance We can arrange Before the Event Insurance (B.T.E.) to cover all of the usual B.T.E. risks and specific packages tailored to your needs relating to employment issues. We are also able to offer specialist After the Event Insurance for Commercial Litigation and other types of claims. Claims Management We assist our clients in managing their claims with insurers. 4. Your Quotation Based on the information provided to us, we will obtain quotations from our range of insurers. We believe in providing our clients with the widest range of options and do not have any exclusive arrangements with any insurer to limit your choice. Please ensure you advise us of your specific insurance requirements. Where possible we will try to ensure that all of your specified insurance requirements advised to us by you have been met within the quotations provided. The terms of all policies provided by the insurers from whom we obtain quotations comply with the requirements of any relevant professional rules. If the policy provided by your proposed insurer provides additional benefits we will explain these to you. A full policy summary is available from us. 30/06/15/AH Page 4 Version 2.2

5 5. Insurance Premium Tax (IPT) Your premium detailed in the policy will include IPT at the prevailing rate. Should the rate of IPT be amended by the Government, your premium will be amended by the insurer to reflect the change. 6. Our Services It is our view that we should make you aware of what to expect from us as your Insurance Broker. We have therefore clearly listed below what you can expect from us during the life of your policy. o At each renewal, a major annual review of costs, cover and risk; o In-house handling of all claims on your behalf with your insurer and relevant third parties; o Advice on issues affecting your business that have an impact on your professional indemnity insurance; o Dedicated Account Manager. 7. Finance Options We understand your Professional Indemnity Insurance may be one of the largest financial commitments you make in a year. We believe that you should have a range of options and not just be tied to one funder because it is a requirement of the insurer. Making use of our experience and contacts we have access to a range of finance options to suit the needs of any practice. For third party premium finance we only offer the services of LDF Operations Limited (LDF). A variety of payment terms and interest rates are available that can be tailored to suit your needs. 30/06/15/AH Page 5 Version 2.2

6 8. Money Laundering The UK is a major international financial and legal centre, with a high reputation for honesty and integrity. Unfortunately, that is why financial and professional businesses, like banks and accountants, are attractive to money launderers criminals sometimes try and hide stolen money by turning it into legitimate income. As you are aware the government has introduced measures to make it more difficult for criminals to make money from their crimes and to confiscate proceeds of crime. For this reason, there are compulsory checks, which firms such as banks, building societies and accountants have to make of their clients. How this could affect you: We are required by law to make a report to the National Crime Agency if we become aware during the course of our professional work, of any circumstances which give rise to knowledge or suspicion or reasonable grounds for suspicion of a money laundering offence. The offence of money laundering may be committed by concealing, arranging or acquiring the proceeds of any criminal conduct including the proceeds of tax evasion, even if the conduct occurs outside the UK. 9. Confidentiality and Data Protection We are registered under and compliant with the Data Protection Act The Act introduced rules to protect personal privacy, and in particular the eight data protection 'principles' that restrict how information identifying a living person, such as their name and address or a photograph, can be used. We will treat all your personal information as private and confidential to us and anyone else involved in the normal course of arranging and administering your insurance, even when you are no longer a customer. We will not give anyone else any personal information except on your instructions or authority, or where we are required to do so by law, or by virtue of our regulatory requirements. We may use information we hold about you to provide information to you about other products and services, which we feel may be appropriate to you. If you do not want us to use your information in this way, please let us know. Under the Data Protection Act 1998 you have the right to see personal information about you that we hold in our records. If you have any queries please write to us at our usual office address. 30/06/15/AH Page 6 Version 2.2

7 Under the Data Protection Act, we are required to obtain written permission from you for anyone you want to obtain information on your policy or act on your behalf on an ongoing basis. Please supply details of the authorised personnel. You must notify us in writing of any changes to these permissions, as we cannot be held responsible for actions taken on your policies, by someone with your authority to do so, against your wishes. Individuals have the right to a copy of their information. If you require a copy, please put your request in writing to us at: The Professional Indemnity Company Indemnity House 131 Main Road Broughton Chester CH4 0NR 10. Anti-Bribery Policy We are committed to complying with the UK s anti-bribery laws. We do not offer, pay or accept bribes, nor do we sanction or condone the payment or acceptance of bribes for the acquisition of business by any person who then introduces that business to us. We abide by all applicable anti-bribery laws. In addition, we abide by the policies not to pay or accept bribes for business of those with whom we conduct business. 11. Limit of Liability Our liability to you for negligence, breach of contract or otherwise shall be limited to 10,000,000 in connection with any one event or connected events. We will not be liable for any consequential, special, indirect or exemplary damages, costs or losses or any damages, costs or losses attributable to lost profits or opportunities. We can only limit our liability to the extent the law allows. In particular, we cannot limit our liability for death or personal injury caused by our negligence. Please ask if you would like us to explain any of the above. 30/06/15/AH Page 7 Version 2.2

8 12. About our General Insurance Services 1. Regulatory Information This section describes: 1. the services we will provide you (sub-section 3) and on whose behalf we are acting when arranging insurance for you (sub-section 2); 2. how we earn income from arranging insurance and your right to disclosure of that income (sub-sections 4 and 5); 3. how we search the insurance market for a policy to recommend to you and how we select the insurers we use (sub-section 2); 4. important information regarding your obligation to disclose details (sub-sections 12 and 13), cancellation rights (sub-section 20), complaints (sub-section 24) and how much refund of premium you may be entitled to if you cancel your policy early (sub-section 20). If you are uncertain as to your obligations under these terms or you want any explanation about them please , write to or telephone us using the contact details provided. 2. Whose products do we offer? We will usually recommend a policy/policies from a limited number of selected insurance companies. A list of the insurers and products we offer is available upon request. Please note that we are not under a contractual obligation to select and recommend products in this way. Occasionally we may use the services of another intermediary to place your insurance. 3. What service will we provide you with? We will advise you and make a recommendation to you each time we assess your general insurance needs, including at renewal. We will also assist in the administration of your policy, including assisting you in making claims. 30/06/15/AH Page 8 Version 2.2

9 4. What will you have to pay us for our services? We earn varying levels of commission from insurers based on the value of the premium and the type of policy provided. We may also charge fees in addition to receiving commission. If we also work for you on a fee basis we will agree a fee with you based on the work we expect to have to undertake on your behalf to arrange your insurance and/or assist you with other services. Unless notified to you in advance, we normally make no charges for: Any mid term adjustment to the policy including cancellation Duplicate documents being provided during your policy term Unless we agree otherwise no refund of any fee, commission or other remuneration shall be payable in the event that (for whatever reason) the actual period of insurance is less than the full term or you terminate our appointment by you before the expiry of any policy arranged by us on your behalf. In the event that we are obliged to refund any commission which has been paid to us by insurers we reserve the right to charge you for the amount of commission refunded from any premium refund due to you. 5. Commission Disclosure Unless we tell you otherwise, we will earn a commission from the insurers we place your business with. Other companies may also be involved in placing or servicing your business and may charge an administration fee or other payment which will be passed on to you and disclosed separately from the cost of your insurance. We may earn referral fees from third parties which may derive from incidental activities including arranging premium financing and risk management and will be retained by us. In each case we will retain these payments. Any interest received on monies held on your behalf will be retained by us. For each insurance contract, including any subsequent renewal, if you are a commercial customer (i.e. where the insurance was purchased in connection with your trade, business or profession) you have a right to request information regarding any remuneration that we may have received as a result of placing your insurance business. We will respond to your request as soon as reasonably practicable but within five working days by providing you with a clear statement in writing. 6. Who regulates us? Professionals for Professionals Limited is authorised and regulated by the Financial Conduct Authority. Our Financial Conduct Authority Firm Reference Number is You can check the Financial Servicers register by utilising the FCA website, or by contacting the FCA on /06/15/AH Page 9 Version 2.2

10 7. Are we covered by the Financial Services Compensation Scheme (FSCS)? 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 circumstances of the claim. Information on the Financial Services Compensation Scheme is available at 8. Quotation Our quotations are based on the information provided at the date given and are available for a limited period. We reserve the right to withdraw quotations before they are taken up, and to apply any changes notified to us by underwriters after the quotation was given. Your underwriters reserve the right to carry out risk surveys at any time prior to or throughout the period of insurance. 9. How We Hold Your Money We will hold money that you pay to us in accordance with FCA rules and sometimes under a risk transfer agreement with insurers or other intermediaries. Risk transfer means that money you pay to us is deemed to be received by the insurer or other intermediary. All monies received in respect of insurance premiums are held in a statutory trust Client Premium Bank Account, which means that they can only be used to [collect and] pay insurance premiums, premium refunds and claims and cannot be used to reimburse other creditors in the event of our insolvency. By placing your insurance through us, you agree to us holding your monies in this manner. In arranging your insurance we may employ the services of other intermediaries who are regulated by the FCA and your premium may be passed to these intermediaries for payment to insurers. These firms are also required to hold clients money in a separate trust account. We will also inform you if at any time we are required to pass your premium to firms that operate outside the UK where the protection may be different. Should you not wish us to pass premiums to a firm outside of the UK, please inform us. We do not pay any interest on premiums held by us in the course of arranging and administering your insurance. 30/06/15/AH Page 10 Version 2.2

11 10. Payment Terms All payments due to us are payable as stated in our invoice to you. We shall be entitled to recover all expenses reasonably incurred in the event of default of any payment due to us. We reserve the right to charge interest for the late payment of premiums and/or fees. 11. Confidentiality and Service Please note that when telephoning us, your call may be recorded. This is for the purpose of: complying with our regulators; training; and evidencing the information discussed when concluding the contract between us. Information you provide about yourself and others will be used for insurance administration, including renewal, and we may check it with a credit agency. We add your details to various databases. Several organisations including the police and other insurers may check the information we provide. We may occasionally send you offers from third parties who act on our behalf. For the purpose of the Data Protection Act 1998 the Data Controller in relation to the personal data you supply is Professionals for Professionals Limited. If you do not want us to do this, please inform your Account Manager. 12. Your Duty of Disclosure and Verification Please note that the information provided by you forms the basis of a legal contract between you and your insurer. It is therefore essential that all information provided by you is accurate and true to the best of your knowledge and belief. You also have an ongoing duty to disclose any relevant information, which may influence the acceptability or assessment of this insurance (if you are in doubt whether such information is relevant then please contact us immediately). Please read all documents carefully and verify that all the information contained within them and any provided schedule is correct. If documents do not satisfy your requirements please advise us immediately. Failing to disclose any material information or changes in the risk to your insurer could invalidate your insurance cover and could mean that part or all of a claim may not be paid. If you are unsure if a fact is material you should disclose it. 30/06/15/AH Page 11 Version 2.2

12 13. Your Duty to Notify Circumstances and Claims to Current Insurers Please ensure that, in all instances, circumstances or claims are reported in accordance with the claims reporting procedure contained within your current insurance policy (if you are in doubt whether you have a circumstance/claim to report then please contact us immediately). To ensure that such circumstances/claims are covered under your current policy they must be notified to your current insurer prior to the expiration of that policy. Please read your current policy to ensure you understand your duty to report circumstances and claims and the consequences if you fail to comply with the terms of your policy. Circumstances and claims revealed on your proposal form will not be covered by your new professional indemnity insurer. If you do not report circumstances or claims to your current insurer during the policy year in which the circumstance or claim occurs then you may not be covered for these matters, even if you stay with your current insurer. Failure to report quickly could effect the eventual settlement, prejudice the insurer, cost you money and could mean the insurer will seek to recover the cost to them from you and lead to an increase in premium for you. 14. Your Duty to Read and Understand your Policy Your policy includes detailed terms, conditions and exclusions. Please read your policy documentation and endorsements so you fully understand the terms, conditions and exclusions of your policy. Your policy contains a number of warranties and conditions precedent. These are terms which you must comply with word for word, otherwise the insurer might not pay any claims and might cancel your policy from the start, even if there is no connection between a breach of these terms and the cause of the loss. Failure to comply with these terms may leave you with no insurance cover and your claim not being paid. An insurance warranty is not a guarantee of something; it typically means that you must comply with terms in order for your insurance protection to remain operative. 30/06/15/AH Page 12 Version 2.2

13 Some conditions precedent impose a responsibility on you to have done something or completed something before a certain section of the policy will operate. If you do not do the thing stated, cover will not be in place. Failure to comply may leave you with no cover and a claim not paid. Warranties are not always referred to as such within a policy and schedule. They may be referred to as conditions, endorsements or special terms. It is important that you look out for these and if you have any doubt about a particular statement, please ask us for advice. Failure to comply with these may leave you without any cover in the event of a claim and the claim may not be paid. If you wish matters to be clarified, please let us know and we will be happy to assist. 15. Insurer Solvency Whilst we endeavour to place business with insurers with adequate levels of financial solvency, we cannot guarantee the solvency of any insurer. We regularly assess the financial strength of the insurers and other intermediaries that we deal with. The process usually involves general observation of the financial ratings applied by independent rating agencies such as Standard & Poor s and A M Best published with other readily available information within industry guides, newsletters and press releases. Whilst we take care to deal with companies that maintain reasonable solvency margins, we cannot guarantee their financial ability to pay claims. 16. Retroactive Date Your Duty to Insure If you do not have insurance cover whilst you carry on your business, then you are not insured for any claim that is made against you for work you carry out whilst uninsured and you will be uninsured for this work even though a claim is made during a subsequent period when you are insured. If you carried on business whist uninsured your new insurer may agree to back date your policy to the date when you commenced your business or to the date when you last had insurance. This is known as a Retroactive Date. If a Retroactive Date is specified in your policy you will only be covered for work carried out by you after the Retroactive Date for circumstances or claims reported to your insurer during your insurer s policy period. Not only is it a breach of professional rules to carry out business uninsured but it is difficult and expensive to obtain Retroactive cover. Few insurers are prepared to accept a client that practices in breach of their professional rules without insurance. 30/06/15/AH Page 13 Version 2.2

14 It is therefore important for you to bring to our attention any gap in insurance cover. We may not be able to obtain Retroactive cover or you may decide that such cover is not affordable by you. We will advise you if we cannot obtain Retroactive cover. Please ensure any Retroactive Cover we obtain for you satisfies your requirements. When you receive your policy if you consider that a Retroactive Date is required or if the Retroactive Date in the policy does not meet your requirements then please contact us immediately. 17. Underinsurance (Average) You need to ensure that the amount of your insurance is adequate at all times. If you make a claim and your insurance is insufficient to cover the loss not only will you be uninsured for the loss over the amount of insurance but the amount the insurers will pay you may be reduced. For example if the sum insured is 8,000,000 and at the time of the loss the rebuilding/replacement costs are 10,000,000, a claim of 5,000,000 would be reduced to 4,000,000 leaving you to find the balance of 1,000,000 as well as the policy excess because you were underinsured. 18. Terrorism Your policy will exclude cover against terrorism as defined in your policy booklet under the War and Terrorism Cover Amendment Clause. Occasionally, cover may be purchased separately. You must request a quotation in this respect. 19. Excess If you make a claim you may have to contribute towards the final amount paid. This is known as an Excess or Deductible. Insurers will not pay the amount of any Excess or Deductible shown on the schedule or any attached endorsement. Any Excess or Deductible should have been detailed in any quotations and policy documentation received from us. 20. Cancellation of Policy Cancellation by You Please note, if you wish to cancel your policy you must first call your Account Manager on Policies can generally only be cancelled by agreement with the insurer. 30/06/15/AH Page 14 Version 2.2

15 For your protection, you must send us a letter saying why you want to cancel your policy. If the insurer agrees to cancellation, you must return any current Certificate of Insurance issued to you. Please note that any refund of premium upon cancellation is made at the discretion of the insurer and is subject to there being no circumstances or claims reported. If after a refund is quoted by an insurer a circumstance or claim is reported, the offer of the refund may be withdrawn. Any refund, if applicable, will be made only to the original payer of the premium and not to a third party. We do not refund our fees or our earned commission. It is important to remember that cancelling your direct debit DOES NOT cancel your policy. 21. Payment Methods For all products and providers, we offer the following methods to pay your premium: In full by cheque, debit or credit card By premium finance or insurer facility If you pay by credit card a charge of 2.5% of your premium will be added to the amount to be paid by you. If you choose to enter into a finance arrangement, this is normally subject to interest charges. Importantly, the arrangement you will enter into will be with the finance company, not us. It is an entirely separate contract irrespective of the insurance contract. In the event of your failure to meet with the contractual obligations regarding payment the finance provider could approach the insurer to seek a termination of the insurance contract to recoup their outstanding finance arrears. You may be liable to pay their costs and charges if you do not keep up your repayments and cover is cancelled under your policy. This is because the agreement is between you, the policyholder and the finance company direct, not us or the insurer. Please note we only offer 3 rd party finance via LDF Operations Limited (LDF). 22. Renewals Policies are not renewed automatically even if paying by direct debit. There are no days of grace on any policy. We will attempt to contact you within a reasonable timeframe to enable you to make an informed decision about your renewal. You will need to instruct us to renew your policy. 30/06/15/AH Page 15 Version 2.2

16 23. Claims Process When we send you your policy documentation we will send you our circumstances/claims reporting procedure and circumstances/claims notification form. Please follow the circumstances/claims reporting procedure. In the event of the reporting of a circumstance that may lead to a claim, or a claim, before you receive your policy documentation we will be your first point of contact. We will supply a circumstance/claim notification form for completion and notify your insurer. Upon receipt of the completed notification form, it will be sent to the insurance company for processing. Our Claims Manager will work with you to achieve the best outcome for your circumstance or claim. Please have the following details to hand when notifying us of a circumstance or claim: Name, address and policy number. Date of incident. Cause of incident. Details of persons causing the incident. Estimate of possible value of claim REPORTING A CLAIM Please contact us: - by writing to us at: The Professional Indemnity Company Indemnity House 131 Main Road Broughton Chester CH4 0NR by telephone: by fax: by your Account Manager 24. What to do if you have a complaint Our promise to you: We aim to provide a fast and efficient, friendly, personal service. We believe that we are here to serve you and we endeavour to ensure that our clients are, at all times, totally satisfied with the service they receive. 30/06/15/AH Page 16 Version 2.2

17 If at any time we fail to live up to these standards or give you any grounds for dissatisfaction then please do tell us. We promise that we will listen sympathetically and do our utmost to resolve any problem or misunderstanding promptly and in a fair and effective manner. Informing us of a complaint There are two ways in which you can do this: - If convenient please raise any issue immediately with your Account Manager. Explain to your Account Manager the nature of the problem. Your Account Manager will try to help but if this is not possible full details will be recorded and you will be contacted by our Head of Compliance, Angela Horton. If it is impractical or inappropriate to discuss your problem with your Account Manager then please contact our Head of Compliance, Angela Horton. Contact may be made by any convenient means, letter, telephone, or in person. Explain fully the nature of the problem and she will endeavour to resolve it as quickly as possible. We sincerely hope that you will never have cause for complaint about any aspect of your dealings with us, however, if you should the details for notifications are: - Angela Horton Head of Compliance The Professional Indemnity Company Indemnity House 131 Main Road Broughton Chester CH4 0NR Telephone Number: address: angela@thepicompany.co.uk Instigating our Formal Complaints Procedure In practice we find that the process described above enables us to resolve many issues quickly and satisfactorily. However, to cater for any cases which cannot be resolved, complex issues, or legal matters, which may arise, we operate a formal complaints procedure. If you have informed us of your complaint as described above, and we have not resolved it at the close of business on the next working day, then our formal complaints procedure will be triggered automatically. A full copy of our complaints procedure is available on request. 30/06/15/AH Page 17 Version 2.2

18 If you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service (FOS). You can contact the FOS by utilising the FOS website, or by contacting the FOS Consumer Helpline on (free for people phoning from a "fixed line" (for example, a landline at home)) or (free for mobile phone users paying a monthly charge for calls to numbers starting 01 or 02). Alternatively, you can contact them at Financial Ombudsman Service, Exchange Tower, Harbour Exchange Square, London, E14 9GE. Our Financial Conduct Authority Firm Reference Number is Compliance Statement The Professional Indemnity Company fully supports and welcomes regulation of general insurance business. One of the key areas is to ensure that we have explained all of the products and services to you fully and clearly. Your confirmation of order will indicate to us that you are happy with and understand these terms and that they apply to our appointment by you. 26. Jurisdiction The law applicable to these terms and our appointment by you shall be the law of England and Wales unless agreed specifically to the contrary. The Professional Indemnity Company is the trading name of Professionals for Professionals Limited, Reg No , whose Registered Office is Indemnity House, 131 Main Road, Broughton, Chester CH4 0NR. Professionals for Professionals Limited is authorised and regulated by the Financial Conduct Authority. Professionals for Professionals Ltd FCA Reference: /06/15/AH Page 18 Version 2.2