Terms of business

SCOPE AND APPLICATION

This document describes our relationship with you, our regulatory and statutory responsibilities, and the services we shall provide to you and your obligations as our client. 

In this document the terms ‘We’, ‘Us’ and ‘Our’ means R.K. Henshall & Co. Limited. 

Unless we amend this Agreement by sending you a notice of amendment in writing, or a revised Agreement, you agree that if you instruct us to assist you in the placement of your business, we will be doing so based only on the terms of this Agreement. 

ABOUT R.K. HENSHALL & CO. LIMITED

R.K. Henshall & Co. Limited is a company incorporated in England and Wales with registered number 1285024, whose registered office is at The Grove, Mill Lane, Wheelock, Sandbach, Cheshire, CW11 4RD.  We are a general insurance intermediary and an approved Lloyd’s coverholder.

We are authorised and regulated by the Financial Conduct Authority (‘FCA’) and our permitted activities are advising on, arranging, dealing as agent in, and assisting in the administration and performance of general insurance contracts.  Our FCA Firm Reference Number is 308865 and our authorisation details can be verified on the Financial Services Register by visiting the FCA website at:- https://fca.gov.uk/register/firmsSearchForm.do  or by contacting the FCA on 0800 111 6768.

We are members of the British Insurance Brokers Association (BIBA) and the Brokerbility Network of independent insurance brokers.

OUR PRODUCTS AND SERVICES

As an independent insurance broker, we have access to a wide range of insurance products from many leading insurance companies and Lloyd’s underwriters. Unless otherwise advised, the services we provide (the ’Services’) are as follows:

· Acting on your behalf when sourcing and placing your insurance and when dealing with any claims made on policies we have arranged

· Providing advice on your risk exposure and insurance needs, based on a fair analysis of the market

· Arranging cover to meet your demands and needs

· Helping with ongoing changes

R.K. Henshall & Co. Limited is not under a contractual obligation to conduct insurance distribution exclusively with one or more insurance undertakings and does not provide personal recommendations. We provide advice on the basis of a fair analysis of the market unless we specifically state otherwise. Unless you tell us otherwise, we will act on the understanding that we have your authority to agree to insurance policy wordings on your behalf.

As an insurance intermediary we normally act for you, however there are occasions where we act as an agent of the insurer under delegated authorities which enables us to accept business on the insurer’s behalf and provide immediate coverage for your risk.

We do not offer advice in relation to the sums insured or indemnity limits chosen by you, and as such we do not accept responsibility for the adequacy of the sums insured or the indemnity limits.

We may also provide premium payment facilities through third party lenders.

DISCLOSURE OF INFORMATION

Your insurance is based upon the information provided to the insurance company.

If you are a Consumer (an individual buying insurance wholly or mainly for purposes unrelated to their trade, business, or profession) you must take reasonable care to answer all questions clearly, 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.

If you are not a Consumer, you must present the risk (ie. the subject matter of the proposed insurance) fairly. This means that you must disclose to insurers, before the setting up or renewal of your insurance policy is concluded, 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. A senior manager is 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 a particular knowledge about the risk to be insured.

If you deliberately or recklessly (i.e. without care) fail to comply with your obligations to present the risk fairly, insurers may avoid the policy. This means they can retain all premiums and treat the policy as if it never existed and refuse to make any claims payments. You could also be obliged to repay any claims payments that had already been made. If you fail to present the risk fairly, but your failure was neither deliberate nor reckless, the insurers’ response will depend upon what would have happened if you had complied with your obligations:

1. if insurers would not have provided the policy, they may treat the policy as if it never existed, refuse to make any payments for claims and demand the return of any claims payments already made. However, insurers would have to return any premium payments already made;
2. if insurers would have provided the policy but on different terms, the policy will remain in force but will be treated as if those different terms applied from the start of the policy. This could result in a claim not being met in part or in full;
3. if insurers would have provided the policy but charged a higher premium, insurers may reduce any payment in proportion to the difference between the premium charged and the premium that would have been charged if you had fairly presented the risk. This could result in a significant reduction to the amount of any payment under the policy.

All statements and facts disclosed on proposal forms, statements of fact, claim forms and other documents should be full, true, and accurate and must be given after undertaking a reasonable search, including consulting with your senior management. 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.

INSURER SECURITY

Whilst we monitor the financial strength of the insurers with whom we place business it should be noted that the claims-paying ability of even the strongest insurers could be affected by adverse business conditions. We cannot, therefore, guarantee the solvency of any insurer or underwriter. A liability for the premium, whether in full or pro rata, may arise under policies where a participating insurer becomes insolvent.

INSURANCE DOCUMENTATION

We shall forward insurance contract documents, and any amendments or endorsements to your contract, as soon as reasonably practical.  Although we will check the contract documents we send you, you are responsible for reviewing the documentation and ensuring that the coverage is in accordance with your instructions.  If you have any questions about the coverage, limits or other terms and conditions, or concerns that we have not implemented your instructions correctly, please contact us immediately.

You should pay particular attention to any contract conditions or warranties and to the premium payment terms set out in the premium debit note which we shall send to you.  All premium payment terms must be met on time or your insurer may have the right to cancel your insurance coverage.

Please carefully consider any claims reporting instructions within the insurance documentation or as may be separately advised to you.  Failure to report a claim, or circumstances which may give rise to a claim, in a proper and timely manner may jeopardise coverage of the claim.

Claims may be able to be made under a contract of insurance long after its expiry date.  It is important, therefore, that you keep all of your insurance documentation in a secure place.

OUR REMUNERATION

Our remuneration for the services we provide to you will usually take the form of a brokerage/commission, which is a percentage of the insurance premium paid by you and allowed to us by your insurer from the insurance premium paid.

In some circumstances we will agree to work for you based on a management fee rather than taking commission. We will agree the fee to be paid by you as part of the insurance negotiations. When we work on this basis ,this will be the only fee paid by you to us for our services for the period of insurance involved, and no administration fees or adjustments fees will be paid in addition.

Brokerage and fees are earned in full at inception of the contract and we shall be entitled to retain all fees and brokerage in respect of the full period of the insurance contract.  Therefore, if cancellation of your contract of insurance involves a return of premium from the insurer our fees or brokerage will not usually be returnable to you. And / or in addition to retention of brokerage we reserve the right to charge a cancellation fee of £25 in respect of costs incurred by ourselves in the cancellation of your policy (ies).

In the event of any mid-term adjustment or amendment to cover an administration fee of £25 will be charged to cover our costs, unless as stated above we have agreed to work solely on the basis of a management fee.

In the event of policy inception or renewal we will charge the following administration fee structure, unless as stated above we have agreed to work for you solely on the basis of a management fee.

Premium Band	Charge
Up to £249.99	£25.00
£250.00 – £499.99	£35.00
£500.00 – £999.99	£50.00
£1,000.00 – £1,999.99	£75.00
£2,000.00 plus	£100.00

In the event multiple policies have a renewal date within 14 days of each other a single fee will be charged. This being the appropriate fee for the sum of all policies premiums.

In addition to the methods of remuneration described above, we may receive remuneration by way of administrative fees or fees for services provided to insurers.  We may also receive a fee or commission based upon the volume of business placed with certain insurers and your insurance business may be placed with such insurers.  We may also have placement facilities with insurers where we are entitled to receive a profit commission and your insurance business may be placed under such facilities.    We also receive commission for arranging finance agreements for the payment of premiums and we may also receive commission or fees for passing introductions to other professionals.  You are entitled at any time in writing to request information regarding any commission which we have received from insurers as a result of placing your insurance business.  If you wish to request this information, please write directly to the Compliance Officer at The Grove, Mill Lane, Wheelock, Sandbach, Cheshire, CW11 4RD who will deal with your request within 14 days.

THE RECEIVING AND HOLDING OF CLIENT MONEY

Client money is any money that we receive and hold in the course of arranging or administering insurance on your behalf. We will hold the money that you pay to us on behalf of insurers either in accordance with the Client Money rules (CASS) or under a risk transfer agreement with insurers. This will entail holding your money in one of the following ways:

1. In a Statutory Trust bank account that only allows us to use the money held in trust on behalf of a customer for paying that customer’s premium to an insurance company and to pay premium refunds or claims we receive from that insurance company to the customer, once the premium has been received from that insurance company. We cannot use that customer’s money to pay another customer’s premium or refund. We do not pay any interest on premiums held by us in the course of arranging and administering your insurance, unless, in the case of consumer transactions, we receive more than £20 per transaction and then we will ask for your permission to retain the interest. Unless you inform us otherwise, you are consenting to us holding your money in this way.

• Risk Transfer – in most cases we act as the agent of Insurers for handling payment of premiums, return premiums and claims subject to Risk Transfer where Insurers assume the credit risk. This means that payment by you of premium to us will be deemed payment to Insurers and claims and return premiums paid by Insurers through us will not be deemed paid until received by you. In the event that our firm becomes insolvent Insurers bear the risk of any losses and so customer monies remain protected.

USE OF THIRD PARTIES

We will inform you if we intend to arrange an insurance contract on your behalf, or transfer your money to Insurers using another person, such as another broker or an outsource arrangement. 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.

You must notify us if you do not wish your insurance to be arranged with a particular firm or your money to be passed to a particular firm or person in a particular jurisdiction.  

CONFLICTS OF INTEREST

Circumstances may arise where we may find we have a conflict of interest or otherwise have a material interest in, or related to, a matter in respect of which we are acting.  For example, we may find that the interests of two clients for whom we act conflict.

The insurance market is complex and there could be other relationships not described here which might create conflicts of interest.  Whatever the circumstances, we shall endeavour to act in your best interests at all times.  We seek to avoid conflicts of interest but where a conflict is unavoidable we will explain the position fully and wherever possible manage any conflict of interest fairly.

CANCELLATION RIGHTS FOR PRIVATE INDIVIDUALS AND MICRO-ENTERPRISES

If you are entitled to the 14 day cooling off period in respect of one or more of the insurances effected, we will explain the terms and duration of the cooling off period to you, and any charge which we may be entitled to make, should you decide to cancel your insurance during the cooling off period.  This information will be confirmed to you in writing.

CLAIMS

You are responsible for providing notification of a claim, or potential circumstances that may give rise to a claim, under the contract of insurance.  You must familiarise yourself with the coverage conditions or other procedures relating to claims and to the notification of those claims.  Failure to adhere to the notification requirements, particularly timing, as set out in the contract of insurance may entitle the insurer to deny the claim.  In presenting a claim, it is your responsibility to provide full, true and complete information in relation to the claim and to disclose all facts which are material to the claim.

COMPLAINTS

We recognise the importance of service and set ourselves high standards. Should there be an occasion when we do not meet your expectations we are equally committed to dealing with any complaint in a thorough and professional manner.

If you wish to register a complaint or request a copy of our complaints procedures please contact us:

• In writing, addressed to The Compliance Officer, R. K. Henshall and Co. Ltd, The Grove, Mill Lane, Cheshire, CW11 4RD
• By telephone to 01270 758070 and ask to speak to our Compliance Officer.
• By email at enquiries@rkhenshall.com

If you cannot settle your complaint with us directly, you may be entitled to refer it to the Financial Ombudsman Service (FOS). You can find out more about this by visiting the FOS web site at www.financial-ombudsman.org.uk.

If you are not eligible for referral to the FOS, we have an appeal process that ensures that your complaint is reviewed by a senior manager not involved in the original complaint handling. A copy of our procedures for dealing with complaints is available on request.

FINANCIAL SERVICES COMPENSATION SCHEME

We are included in the Financial Services Compensation Scheme (FSCS). You may be entitled to compensation from the FSCS if we cannot meet our obligations. This depends on the type of business and the circumstances of the claim. Insurance advising and arranging is covered for 90% of the claim, without any upper limit. For compulsory classes of insurance, insurance advising and arranging is covered for 100% of the claim, without any upper limit.

Full details and information on this compensation scheme are available from the FSCS whose contact details can be found on the FSCS website www.fscs.org.uk.

MANAGING YOUR DATA

At R K Henshall we take the protection of our customers’ data seriously. In sourcing, arranging and administering your insurance policies we will need to collect personal information and keep it up to date. We also need to share information with other parties such as insurers, loss adjustors and claims handling companies.

We may also use the data we hold about you to provide you with information about other products and services which we feel are appropriate. Our Customer Privacy Notice provides details of how we use and share your information as well as your rights and how to exercise them. You can access it at www.rkhenshall.com/privacy-policy.

TERMINATION

This Agreement may be terminated either by us or by you upon giving one month’s notice in writing to the other, or as may otherwise be agreed.  If this Agreement is terminated by you we shall be entitled to receive any and all fees or brokerage payable whether or not the same have been received by us in relation to contract(s) placed by us.

THIRD PARTY RIGHTS

Unless otherwise agreed by us in writing no term of this Agreement is enforceable under the Contracts (Rights of Third Parties) Act 1999.

TRANSFERRED BUSINESS

If we take over the servicing of insurance policies which were originally arranged through another insurance broker or intermediary or directly with an insurer, we do not accept liability for any claim arising out of the advice given by that broker, intermediary or insurer, nor for any errors, omissions or gaps in your current insurance protection. Please contact us without delay should any aspect of a policy, which has been transferred to us cause you concern or if you need an immediate review. Otherwise we will endeavour to review all transferred policies as they fall due for renewal.

E-MAILS

We may communicate with you and with other parties in order to provide our services to you, by e-mail.  By engaging in this method of communication we both accept the inherent risks e.g. the security risks of interception of or unauthorised access to such communication. In the event of a dispute, neither of us will challenge the validity of this method of communication.

FINANCIAL CRIME AND COMPLIANCE

It is important that all laws, rules and regulations are complied with by both you and us at all times.  If we discover any matter, act or thing relating to you, or any insurance that you place with us, that contravenes any law, rule or regulation, then we reserve the right without liability to cease to act on your behalf.

MONEY LAUNDERING AND PROCEEDS OF CRIME

To comply with United Kingdom money laundering regulations we are required to obtain evidence of the identity of clients for whom we act, and we will seek further information if you request us to make any payments to a third party.

We are obliged to report to the National Crime Agency (NCA) any situation giving rise to a suspicion of money laundering.  Please note we are prohibited from disclosing any report to our client.

ANTI-BRIBERY & CORRUPTION

We are committed to the prevention, deterrence and detection of bribery.  We have zero tolerance towards bribery and corruption, and operate with UK Bribery Act 2010 and similar laws applicable in countries where we conduct business.

SANCTIONS

We may request information from you to ensure that no sanctions will be, or are likely to be breached, as a result of us acting on your behalf or in placing the insurances.  You must immediately provide to us any information reasonably requested in this respect.  We will not provide advice relating to sanctions, or potential breaches of sanctions.  Whilst we will try to comply with all relevant sanctions legislation (in the UK, European Union or elsewhere), it is for you to ensure your own compliance with such legislation and we will not accept any responsibility for any breaches of sanctions legislation that you may commit in any part of the world.  If we suspect or find that there has been a breach of such legislation, we shall be entitled to refer such matter to the appropriate authorities without notice to you.

We shall not be deemed to provide services in support of any cover or insurance, and shall not be liable to provide any services or services in support of any claim or provide any benefit hereunder to the extent that such service, support or provision of benefit would expose us to any sanction, prohibition or restriction under United Nations resolutions or the trade or economic sanctions laws or regulations of the European Union, United Kingdom or United States of America.

LIMIT OF LIABILITY

Our liability to you for breach of contract, negligence, breach of statutory duty or other claim arising out of or in connection with this Agreement or the services provided by us shall be limited as follows:-

• In respect of personal injury or death caused by our negligence, no limit shall apply;
• In respect of any fraudulent acts by us, no limit shall apply;
• In respect of breach of contract, negligence, breach of statutory duty by us other than in clauses (i) and (ii) above, our liability is limited to £5,000,000; and
• Subject to clauses (i) and (ii) above, in respect of the following losses: loss of revenue; loss of opportunity; loss of profits; loss of anticipated savings; or any other indirect or consequential loss, we will have no liability in any circumstances.

GOVERNING LAW

This Agreement shall be governed and construed in accordance with English law and any dispute arising under it shall be subject to the exclusive jurisdiction of the English courts.

R.K. Henshall & Co., Limited – Registered in England No. 1285024

The Grove, Mill Lane, Wheelock, Sandbach, Cheshire, CW11 4RD

Telephone No: 01270 758070 Fax no: 01270 758050

Regulated by the Financial Conduct Authority No. 308865

Consumer Credit Act Licence No. 375794

Data Protection Act – Registration No. 26175606

Member of the British Insurance Brokers Association