Frequently Asked Questions
Insurance is a complex area and specific language is often used for legal clarity.
Here’s the answers to some of the most common questions we are asked. Please ring us on 01454 800 800 if you need further clarification or help with any matters not covered here.
- Who is the Insurer behind your policies?
- Why is the information you give when obtaining a quotation important?
- Can policies be cancelled and a refund obtained?
- How do the policies work and what does 'claims made' cover really mean?
- What does the ‘Retroactive date’ mean in the Professional Indemnity policy?
- Do you need Employers Liability insurance if your business only employs you personally?
- Can you change your cover mid policy year?
- How do I prove that I have insurance?
- Does my turnover affect my premium?
- How much cover should I buy?
- How do I make a claim? Should I always report a potential complaint or claim against me?
- What if I have a complaint?
- How do you 'Treat Customers Fairly'?
Who is the Insurer behind your policies?
As an independent broker, we work with over 30 insurers to match client needs to insurer appetites. While we cannot guarantee an insurer's financial well-being, we regularly check the financial stability of each insurer. The majority of our insurers are A- rated or above. We will work with insurers with a lower rating if a client has limited insurer options for their specific circumstances and the client both understands and accepts the additional risk.
Insurers have been selected by Ntegrity for their innovative, supportive approach, as well as their longstanding experience, knowledge and reputation.
Why is the information you give when obtaining a quotation important?
You have a legal duty under The Insurance Act 2015 to provide Insurers with a 'fair presentation' of your risk by disclosing all information that might affect Insurers in deciding whether to cover you and the premium to charge. If you don’t disclose this “material information” accurately, Insurers may be entitled to avoid claims and/or cover. Material information would include, for example, accurate descriptions of what you do; the type and scale of work undertaken (your turnover), the geographical reach of your business operations and previous claims or losses.
Can policies be cancelled and a refund obtained?
Professional Indemnity and Management Liability (D&O) insurance policies cannot typically be cancelled by you once in force (often at the insistence of professional bodies or regulators). In exceptional situations, Insurers may agree to terminate the contract.
Office, Public and Employers Liability and certain other insurances can be terminated if the business should close, for example. Please email firstname.lastname@example.org for further information.
How do the policies work and what does 'claims made' mean?
Professional Indemnity insurance is arranged on a ‘claims made’ basis, which means that a 'live' policy must be in force at the time you first become aware of the possibility of a claim, no matter when the work giving rise to the claim was performed. If you allow your Professional Indemnity insurance to lapse, and then become aware of a potential claim after cover has expired, you would be left without protection. It is therefore vital to maintain continuous protection against liabilities that might arise from your past after you have discontinued the work.
Public/ Products and Employers Liability insurance is arranged on a ‘claims occurring’ basis, meaning that the policy in place at the time the accident or damage occurs will respond to any claim.
What does a ‘Retroactive date’ mean in the Professional Indemnity policy?
A ‘retroactive date’ appearing in the policy means that cover will only apply to claims arising from work you have undertaken on or after the date shown. If the policy shows a retroactive date of ‘None’, the policy will apply to any claim that you become aware of during the policy period right back to the date of first establishment of the business.
Cover can be extended to apply to work carried out before your policy start date for an additional premium.
Do you need Employers Liability insurance if your business only employs you personally?
If the company employs just the owner and immediate family members then, legally, cover may not be required (although you should always obtain legal advice on your own circumstances). Your clients may however insist that you have insurance in place to allow for situations where you need to send a substitute when you are unable to work.
Can you change your cover mid-policy year?
How do I prove that I have insurance?
When we've arranged your cover, you will be sent a summary of your insurance. Insurers can take a few days to issue policy documents to us. We check the documentation carefully and will then email the policy documents to you. A copy will also be available on our Ethos Customer Service Portal. Download your Ethos guide here.
Does my turnover affect my premium?
Yes, premiums for Professional Indemnity and Public Liability insurance are based on your turnover, both current and in the recent past. The more work you are carrying out, the higher the risk of a claim. This is why if your turnover reduces your premium does not drop immediately, as insurers still may face claims from historical work.
How much cover should I buy?
- If you are a member of a professional body, there may be rules in place requiring you to have specific levels of cover and we can guide you on these.
- The Professional Indemnity policy often has a limit for a single claim ('Any one claim') with your legal defence costs covered in addition. If you lose a claim, you may become liable to pay the claimant's costs in addition to compensation. You cannot control who the claimant engages to help them with their claim, nor their chargeable rates.
- Other types of limit can be offered by insurers, such as an annual or 'aggregate' limit, and legal defence costs can sometimes be included within this.
- You should consider a limit of indemnity that can adequately cover the costs of a claim, the claimants costs and inflation - allowing for the fact that claims are often settled years after the policy under which they are notified has ended.
Public & Products Liability
- Public Liability limits of indemnity also apply to any one claim (with your legal defence costs covered in addition). Limits under Products Liability apply to a single claim and in total (or ‘aggregate’) for all claims arising during the policy year.
- Physical property damage can usually be quantified quickly with accuracy, but court compensation levels for personal injury have risen in recent years and can be less predictable.
- The level of cover provided typically by UK Insurers is £10,000,000 for any one event (with your legal defence costs covered in addition). Higher levels of cover can be arranged at additional cost but Insurers would need to understand the requirement for greater protection.
How do I make a claim? Should I always report a potential complaint or claim against me?
You should notify insurers of all potential claims, whether or not you think they have merit. Contact our Claims Director, Tara Price, to discuss the circumstances further on 01454 800 822 or email email@example.com.
What if I have a complaint?
Please let us know and we will do our best to resolve your issue without delay. Click here to read our Client Complaint Guide. This will help you understand how we will address your issue and the timescale for the process.
If you are unhappy with how your complaint has been dealt with, you may be able to refer your complaint to the Financial Ombudsman Service.
How do you 'Treat Customers Fairly'?
As independent brokers, we work for you. We aim to find you an effective, reliable policy at a realistic price, with our income being very much a secondary consideration. We work on your behalf to match your business to Insurer’s risk appetite, financial strength, market commitment and claims approach.
We have no enhanced commission deals that influence our Insurer choices or deals based on the volume of business we transact with them. We have agreed commission levels with Insurers that allows us to serve you effectively whilst the majority of the premium reaches the Insurer. When more of the premium is retained by your broker, Insurers receive less funds to cover claims.
We invite all of our customers to complete a customer satisfaction survey when they join us, after a renewal, if they use our in-house claims support and when they leave us. We are continually improving our service and welcome all feedback. You can read some of our client testimonials on the Home and Our Team pages.