So, you’ve gone to renew your insurance policy or get something in place, and you get a couple of comparison costs. The costs vary in price and you want to make sure that you are covered, however two of the quotes don’t have any accompanying documentation.
Beware! It is an FCA requirement to provide a formal, written quote with any insurance policy. This is not a process that is always followed by certain Brokers, however, it is one that must be! This is for the simple reason that without a formal quote, you simply do not know what you are buying. We have even seen some quotes sent to clients by text with a mere premium charge!!
Why does this matter to me?
Insurers are required to be transparent and you need to know what you are covered for, but certain Brokers do not pass this information to the client, which in turn does not underline what areas you are not covered for. Without a formal quote you are not able to know this.
Having full and written formal quotes will enable you to compare the policies that you are considering side by side and select the most appropriate one for your business. Not all policies are the same and costs can vary; just remember the cheaper the cost, the likelihood is that the less will be covered!
Working with a Professional Broker will mean that you can ask questions about the different quotes and, if there is something additional you need to make sure is covered, your Broker will be able to look at a policy that meets that requirement.
What if I have not been provided with a formal quote?
If you have been provided with an insurance quote that does not include a full and formal written terms and conditions, then you are entitled to ask for one as it is an FCA requirement.
However, you need to bear in mind that any Broker who has not provided you with a full, contract certain quote is in breach of FCA rules and therefore probably not a reliable provider to entrust such an important area of your business with.