Terms of Business Agreement

Accepting our Client Agreement

Please read this agreement carefully. It sets out the terms upon which we agree to do business with you and contains details of our regulatory and statutory responsibilities. It also sets out some of your responsibilities and replaces any previous agreement between us. Do not hesitate to contact us immediately if there is anything in this agreement you do not understand or with which you disagree.

By asking us to quote for your insurances, you are providing your informed agreement to these Terms of Business. We draw your particular attention to our Privacy Notice and the section below headed ‘Data Protection and Confidentiality,’ and specifically how ‘sensitive personal data’ will be used, which can be found on page 2 of this document. For your own benefit and protection, you should read these terms carefully. If you are unsure about any aspect of our Terms of Business or have any questions regarding our relationship with you, please contact us at the address below.

About Nautical

Nautical is a trading style of Mercia Underwriting Solutions Limited. Operating from 57 Elm Road, Leigh-on-Sea, Essex SS9 1SP

E-mail: enquiries@nautical-insurance.co.uk

Telephone: 01702 470 811

The Financial Conduct Authority

Mercia Underwriting Solutions Limited is authorised and regulated by the Financial Conduct Authority (FCA) under firm reference number 304948. You may check this on the Financial Services Register by visiting the FCA’s website, register.fca.org.uk/s/ or by contacting the FCA on 0800 111 6768.

Our Service

We arrange and administer marine insurance under binding authority and on behalf of Travelers Insurance Company Limited. The Nautical Yacht & Motorboat and Canal & Riverboat policies underwritten by Travelers Insurance Company Limited are specifically designed and unique to us. We arrange insurance in accordance with the binding authority granted to us by Travelers Insurance Company Limited. Our Services include: -

• arranging your insurance cover with Travelers to meet with your requirements or where your requirements cannot be fully met, providing you with a clear explanation;
• issuing cover notes and insurance schedules;
• helping you with any changes that you need to make to your insurance during the policy period;
• reminding you when you need to renew your policy in time to allow you to consider alternative providers and or arrange any continuing cover.
• claims assessment and administration.

We may also arrange other boat insurance or other associated marine insurances. We will provide you with all relevant details of the Insurer and the product at the time of quotation.

Our Remuneration

We are usually remunerated by brokerage, which is a percentage of the insurance premium paid by you and allowed by the Insurer with whom the insurance is placed. In addition, we also charge a fee to the premium charged by Insurers to cover our administration of your insurance, please refer to the Scale of Charges section of this agreement. Alternatively, we may act on your behalf for a fee, which will be disclosed to you before the policy is concluded. This may be instead of or in addition to any brokerage payable. Where we act for a fee, unless otherwise agreed with you, this will normally relate to the initial placing of the insurance and subsequent maintenance of the policy until renewal. Should you request a material mid-term adjustment or series of adjustments to your insurance or an exceptional claim incident occurs we may seek to negotiate an additional fee with you at the time.

In addition to client fees and/or brokerage payments we may receive remuneration from insurers reflecting the aggregated income and or profitability of our entire account with them. In all such circumstances, our duty to act in the best possible interests of our customers remains paramount.

We will, if requested, disclose the amount of any commission being earned. If the exact amount cannot be confirmed, the basis for calculating such figures will be disclosed.

Brokerage commissions and fees for bringing about or arranging the insurance are considered fully earned when the insurance incepts, irrespective of when the premium for the insurance is payable to the Insurers and/or when any fees/commissions are payable to us. Fees/commissions are not refundable in the event of return premiums being allowed by Insurers after inception of the policy be that through cancellation, early termination of the policy or any other reason.

Payment methods and credit terms

We normally accept payment by bank transfer, cheque, debit or credit card.

All policy premiums are to be paid by inception or renewal date.

Our Bank of Scotland account details are:

Account No. 10139161 | Sort Code: 12 05 65 | Account: Nautical Insurance Insurer Trust

All premiums paid to us, together with any premiums returned to us by insurers, are held by us in a separate Non-Statutory Trust account designated as a client account in accordance with FCA rules. A copy of the Deed of Trust is available on request.

In most cases, our financial arrangements with insurance companies are on a ‘risk transfer’ basis, which means that we hold premiums and refunds on behalf of the insurer i.e. the risk is transferred to the insurer and the premium is deemed to be in the insurer’s possession. You will be notified in cases where ‘risk transfer’ does not apply.

In the case of some transactions, client money may pass through other authorised intermediaries before the insurer receives it.

No interest will be paid to clients in respect of money held in client accounts. In dealing with us, you agree to our holding client money in this way.

Failure to comply with our credit terms may invalidate your insurance.

Duty of disclosure to Insurers

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.

Material Facts are matters or information which may influence your insurer as to the acceptability or otherwise of your risk and the terms your insurer may require. They must be disclosed at the earliest opportunity and certainly at each renewal and also throughout the life of a policy. If you are in any doubt as to whether any information constitutes a Material Fact, you must disclose it to us or your insurer. If any document is completed in whole or in part on your behalf, it is your responsibility to check that the answers given are true and complete. You are advised to keep copies of any correspondence or documentation sent to us for your own protection. Please do consult us if you are in doubt on any aspect.

All statements and facts disclosed on proposal forms, statement of facts, claim forms and other documents must, to the best of your ability, be full, true and accurate. Where your representatives have completed forms 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.

It is important that you understand that any information, statement or answer provided by you, to us or your insurer, is your responsibility and must be correct. Your attention is particularly drawn to the importance of the declaration and signature on any insurers’ proposal form or Statement of Fact as any failure to disclose facts material to the insurance or any inaccuracies in your answer may invalidate your insurance cover in part or in its entirety.

Awareness of Policy Terms

When a policy is issued you should read the policy wording carefully, as it is that document including the schedule and any certificate of insurance that is the basis of the insurance contract you have purchased. You should keep all policy documents for as long as a claim is possible under the policy.

If you are in doubt over any of the policy terms or conditions, please let us know promptly. In particular, please watch for and be totally aware of any exclusions, conditions and/or warranties which have been applied to your insurance, as failure to comply with them may invalidate your cover. It is your responsibility to ensure that the cover provided suits your insurance needs.

Renewals

All insurance arranged by us are annual and will expire after a 12-month period. We will send you an early renewal invitation, so you have time to consider our renewal terms alongside alternative providers. We will invite renewal based on your expiring policy and any changes you or we may wish to make. Our invitation will be presented in the same way as your expiring insurance document for ease of comparison. Any changes by us will be highlighted under the heading ‘Changes Affecting Your Renewal.’ To renew with us you must pay the renewal premium in full or paid the initial instalment of a finance plan before the renewal date. As soon as we receive your payment, we will issue a new insurance Schedule without delay.

Cancellation

Your insurance contract may include a cancellation clause. A cancellation clause is mandatory for retail policies. You should make any request for the cancellation of a policy in writing and any relevant Certificate of Insurance should be returned to us or to the insurer concerned if required to do so. In the event of cancellation, charges for our services will apply in accordance with the fees covered in the “Scale of Charges” section of this agreement. The terms of your policy may allow insurers to retain the premium in full or to charge short period premiums in the event of cancellation.

As a Consumer, you are entitled to a 14 day ‘cooling off’ period which means if you change your mind about an insurance or subsequent renewal you have the right to ask us to cancel and receive a full refund provided you do so within the first 14 days from the date that cover began, or within 14 days of the renewal date. We will cancel the cover from the start date as if it had never been in place and refund you any premium paid in full. but we will retain the administration charge.

Where we arrange new business and issue a temporary cover note whilst waiting for you to return our proposal form or any other requested information within a specific period and you fail to meet the requirement, we will be unable to conclude the arrangements. In such circumstances cover will be automatically terminated by the date specified on the cover note. We will retain our administration fee and refund the remaining proportion of the premium paid.

For cancellation following the sale of the vessel, we will cancel and calculate any return premium from the date you confirm the sale to us or from the date shown on the Bill of Sale. Our responsibilities extend to all joint owners named in the documentation so to enable us to proceed with cancellation we require confirmation of the sale from all parties. You must return all documents and may be asked to submit a copy of the Bill of Sale.

You or we may cancel the policy at any other time subject to us both having to give each other 30 days written notice or by mutual agreement. Our reasons for issuing notice of cancellation to you may include but are not limited to dishonored cheques or card transactions in respect of the premium, failure to provide requested documentation or information, deliberate failure to comply with terms set out within the documentation, deliberate misrepresentation or non-disclosure or attempted fraud.

Data Protection and Confidentiality

We and anyone else involved in providing your insurance, will treat all your personal information as private and confidential (even when you are no longer our client) and retain it only for as long as necessary to meet regulatory or legal requirements For the avoidance of any doubt, where you have not yet appointed us as your broker, but in contemplation of such a possible appointment you pass to us information which is proprietary and/or confidential to you, the provisions of this section shall apply as regards such information.

We will not disclose anything to anyone concerning your personal data without your prior consent except where:

• we are legally compelled to do so
• there is a duty to the public to disclose
• our and your interests require disclosure
• you ask us to or give us permission to do so
• we will only use and disclose the information we have about you in the normal course of arranging and administering your insurances including insurers, surveyors, loss adjustors, IT service providers, administrative support service providers, and other like persons to the extent necessary to provide our services to you in a timely manner;

We may use information we hold about you to provide you with details of other products or services which we offer which we feel may be appropriate to you, unless you advise us that you do not wish to receive such information.

Under the Data Protection Legislation in force at the time you have the right to see personal information about you that we hold in our records. Please note that if permitted to do so we may make a charge for the provision of this information. If you have any queries please write to the Company Secretary at our Head Office in Coventry: 118 Holyhead Road, Coventry CV1 3LY. Our Privacy policy is available on our website.

Our privacy policy is available at www.nautical-insurance.co.uk

• You agree that the information we hold about you can be held on computer and/or paper files. You agree that this information may be disclosed to our subsidiary companies who may in turn contact you about products and services they can offer.
• You agree that any information which you give us, may be disclosed to third parties, e.g. insurers, credit reference agencies, for the purpose of processing your application.
• You agree that we may use the information that we hold about you to contact you from time to time by post, e-mail or telephone to bring to your attention additional products or services which may be of benefit to you.

We agree that any consent given by you under paragraph c) above, may be withdrawn by you at any time by contacting us in writing.

The Claims and Underwriting Exchange Register

Insurers share information with each other via the Claims and Underwriting Exchange Register to aid the prevention of fraudulent claims. In the event of a claim, the information you supply on the claim form, together with other information relating to the claim, will be put on the Registers.

Claims

It is essential that all claims are notified to us promptly. We will either issue a claim form or inform you what information is required and pass the details to insurers.

When administering claims, we act on behalf of your Insurer and provide a complete claims service. In the event of a claim or incident you should notify us promptly. At this point we will remind you again that when negotiating and settling claims we act on behalf of the Insurer, not you. Please refer to your policy document or to us for an explanation of any procedures to follow. You may contact us by email to: claims@nautical-insurance.co.uk, by post or telephone as per the contact details at the top of this document. For other associated marine insurances arranged through us it will be necessary for you to deal directly with the Insurer in respect of claims.

Complaints

The FCA regulates sales, advisory and service standards to make sure that general insurance clients are treated fairly. We are committed to providing you with a high level of client service at all times. We regard complaints as a very sensitive area and a key measure of our client satisfaction. It is our policy that all complaints are dealt with as quickly and fairly as possible.

If you wish to register a complaint, please contact our Complaints Officer:

• In writing: Mercia Underwriting Solutions Ltd, Crown House, 10 Worrall Avenue, Arnold, Nottingham, NG5 7GP
• By phone: Telephone 01623 491 500

You may refer your complaint to the Compliance Team at Travelers at any time by email: CustomerRelations@travelers.com or in writing to The Compliance Team, Travelers, 30 Fenchurch Street, London EC3M 3BD.

Our internal complaints handling procedures for the reasonable and prompt handling of complaints is available upon request and if you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service. www.financial-ombudsman.org.uk or by contacting them on 0800 0234 567.

Full details will be provided in our complaints procedure document that will be sent to you on receipt of a complaint or on request.

Conflict of Interests

Occasions can arise where we or one of our product providers may have a potential conflict of interest with business being transacted for you. If this happens, and we become aware that a potential conflict exists, we will write to you and detail the steps to be taken to ensure fair treatment.

Money Laundering / Proceeds of Crime

We are obliged to report to the Serious Organised Crime Agency any suspicion of money laundering or terrorist financing activity 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.

Professional Indemnity Insurance

We conform to the Financial Conduct Authority Rules in respect of Professional Indemnity Insurance, which is mandatory for FCA registered companies.

Governing Law

This agreement shall be governed by the laws of England and Wales and the parties agree herein that any dispute arising out of it shall be subject to the exclusive jurisdiction of English Courts.

Limitations of Liability

We act on behalf of the Insurer and owe no tortious duty of care to you.

Any liability to you for any act or omission (including breach of contract), whether such liability be in damages, equitable compensation or otherwise, shall not exceed the sum of £5,000,000 (or its equivalent from time to time in any other relevant appropriate currency) in respect of any one transaction and in an aggregate series of related transactions.

This section does not apply to any awards made by the Financial Ombudsman Service in the exercise of its compulsory jurisdiction.

‘transaction’ means any professional service provided by us to you, including (but not limited to) the arranging of insurance, advising on insurance cover and/or on particular wordings, notification of claims to insurers, and claims handling generally;

‘series of related transactions’ has its ordinary meaning (save that ‘transaction’ has the meaning given above), but includes (without limitation), (a) transactions concerning, connected with or arising out of the same policy of insurance or reassurance arrangements insure or reinsure (as the case may be) all or some of the same risks, transactions concerning, connected with or arising out of some or all of those policies or arrangements.

We are always prepared to discuss increasing the limit of our liability specified in this section in relation to any individual engagement, if reasons exist, but we reserve the right to decline to increase the limit or (in the event that we agree to increase it) to make an additional charge or to impose alternative or additional conditions. No agreement to increase the limit shall be valid unless made in writing and signed by a Director of Mercia Underwriting Solutions Limited

Under these Terms of Business, you agree not to make any claim against an employee, director, partner, consultant or other individual connected with us.

Transferred Business

Where we are appointed to service insurance policies, other than at their inception or renewal, and which were originally arranged via another party, we shall not be liable during the current insurance period for any loss arising from any errors or omissions or gaps in your insurance cover. Should you have any concerns in respect of a policy, which has been transferred to us, or if you require an immediate review of your insurance arrangements, you must notify us immediately. Otherwise we shall review your insurance arrangements as each policy is due for renewal.

Severability

If any part of these Terms of Business is or becomes illegal, invalid or unenforceable then that part shall be deemed to be removed from these Terms of Business and shall not in any way affect the legality, validity or enforceability of the remaining Terms of Business.

Taxation

Insurance premiums attract Insurance Premium Tax at the prevailing rate. Engineering inspections and some other services attract VAT at the prevailing rate. Some fees may not have a taxation element at all. If you are VAT registered then the VAT element may be recoverable by you. Insurance Premium Tax is not recoverable.

Termination

• We may terminate this agreement by giving you at least 30 business days written notice, unless the following circumstances apply, in which this agreement will terminate immediately without notice or penalty:
  • In the event you become the subject of a voluntary or involuntary scheme of arrangement, insolvency process, liquidation proceedings, action in bankruptcy, or make or propose any composition with its creditors or otherwise acknowledge its insolvency (save for the purposes of amalgamation or solvent re-organisation);
  • In the event that we have any authority or permission granted to us by the FCA withdrawn, or altered by the FCA in such a manner as to prohibit or materially restrict our ability to conduct regulated insurance activities; or
  • In the event that you are in material breach of the terms of these Terms of Business.
• You may terminate this agreement any time, without penalty. Notice of termination must be given in writing and will take effect from the date of receipt.
• Any transactions already intimated will be completed according to this agreement unless otherwise agreed in writing.
• You will be liable to pay any services we have provided before cancellation and any outstanding fees, if applicable.

Scale of Charges:

Below is a summary of policy fees which are charged in addition, we add a fee to the premium charged by Insurers to cover our administration of your insurance. These will be disclosed to you before your insurance arrangements are concluded within our formal new business quotation or renewal invitation.

New Business

£25.00

Renewals

£25.00

Mid-term Adjustment

£15.00

Lost documents

£10.00

Mid-term cancellation - deduct from refund

£25.00

Watercraft Legal Protection (WLP)

We act as agent for the Legal Protection Group Limited (LPG). LPG is an appointed representative of Riviera Insurance Services Limited (Reg Firm ref: 786116). This is an additional optional cover for your uninsured losses underwritten by Financial & Legal Insurance Company Limited, 5400 Lakeside, Cheadle Royal Business Park, Cheadle, Cheshire SK8 3GQ. Registered Company 03034220. Financial & Legal Insurance Company Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under Firm Reference 202915. An uninsured loss is a loss that is not covered under your boat policy, so you should submit any claim to us first. This optional extra cover is only available to eligible customers. An eligible customer is a private individual, aged 18 or over, who resides in the United Kingdom of Great Britain and Northern Ireland (excludes the Channel Islands and the Isle of Man), and whose vessel is under 79ft/24m, for private & pleasure use only and is registered on Part 1 or Part 111 of the UK Ship Register with the Maritime & Coastguard Agency or is not registered at all. You will also be required to answer 3 questions concerning existing or previous watercraft legal insurance cover and claims history.

We do not make any recommendation in respect of this additional cover and arrange insurance on an information only basis to allow you to make an informed decision whether the cover offered would be appropriate for you. Legal Protection insurance gives you access to a lawyer for practical and financial support to help protect your legal rights. The insurance runs in conjunction with the boat insurance for a period not exceeding 12 months and cannot be added after inception of the boat policy. Multiple boat policies are not covered by a single legal protection policy.

If you choose to add Watercraft Legal Protection you will be required to pay an additional premium. We do not hold client money but rely entirely on Risk Transfer which means we act as agents of Legal Protection Group Limited in collecting premiums and handling refunds due to customers. We receive a percentage commission from LPG, but we do not apply any fees. The policy wording is only available by email. We will confirm by email that cover is in place and attach a payment receipt and copy of the policy wording.

Our Fees or Charges for WLP

None

Watercraft Legal Protection Claims

All claims are administered by Legal Protection Group Limited (LPG). It will be necessary for you to deal directly with LPG or their legal partners in respect of claims. In the first instance you should contact the relevant Helpline Service number in the Policy wording. If the Helpline cannot resolve the issue and you need to make a claim, please phone the dedicated claims reporting line on 0344 840 6345 from within the United Kingdom or 0044 161 696 6261 from abroad. When asked, provide our name, Nautical, as your insurance adviser.

Watercraft Legal Protection Complaints

To make a complaint please email complaints@legalprotectiongroup.co.uk or telephone 0333 700 1040 (lines are open Monday to Friday 9am to 5pm) or write to Customer Service Department, Legal Protection Group Limited, 8 Pinkers Court, Briarlands Office Park, Gloucester Road, Rudgeway, Bristol, BS35 3QH. For further information on how to make a complaint you should visit https://www.legalprotectiongroup.co.uk/policyholder-information

Cancellation of Watercraft Legal Protection

The policy may be cancelled by you at any time. If you cancel the policy within 14 days of purchase, or within 14 days of receiving the policy document, whichever is the later, you will receive a full refund of premium. You can cancel the policy at any other time by giving us 7 days’ notice. Providing no claims have been made during the current period of insurance, you will be entitled to a pro rata refund for the remaining time on cover. Where the vessel is sold, or ownership transferred, Watercraft Legal Protection will automatically be cancelled from the same date as the boat insurance. WLP Insurance is not transferrable.