Business Interruption Terms

This is a ‘claims made’ insurance which covers only claims notified in writing during the Period of Insurance.  This Policy insures you the Policyholder.
 
Important information

This document, the Schedule and any endorsements attached form your Policy. Collectively, these documents set out the conditions of the insurance. Please read them carefully and keep them in a safe place. We understand that you may be very busy, but we strongly recommend that you find time to read the documents. If you are unable to read them in full then you must read at least:

1. Definitions

2. Business Interruption

3. Exclusions

4. Claims Procedure

5. Complaints

6. Financial Services Compensation Scheme

 

The Insurer agrees to pay the Professional Expenses incurred by the Designated Agent when acting for a Designated Client in the event of an Insured Incident providing the relevant premium has been paid. Nothing in this insurance contract is intended to create rights in favour of anyone other than the Policyholder. The Contracts (Rights of Third Parties) Act 1999 does not apply to this Policy.

The Policyholder and Insurers acknowledge that the Policyholder has an insurable interest under this Policy and both parties agree not to challenge its validity by contending that the Policyholder does not have an interest in the subject matter of the insurance.

 

DEFINITIONS

Agency

An agency, or employment business, which has signed an agreement with the Designated Member, for the Designated Member to provide services to an End Client.  The agreement must state the rates and payment terms for the submission of the fees to be paid by the agency.

 

MT

Markel Tax, a division of Markel Tax and Consultancy Services Limited (MTCS) which administers the Business Interruption Insurance Policy including Claims Settlement on Insurers’ behalf and to whom any notification of claim must be addressed. MTCS is an appointed representative of Markel International Insurance Company Limited which is authorised by the Prudential Regulatory Authority and regulated by the Financial Conduct Authority and the Prudential Regulatory Authority. Insurance is underwritten by Markel International Insurance Company Limited. Financial Services Register 202570.

 

Business Interruption

 

(i) Business Failure of the Agency

The loss of fees suffered by a Designated Member where an Agency is subject to bankruptcy order or becomes insolvent whilst a Designated Member is engaged on an assignment and as a result that Designated Member is not paid for work, which has been verified by the End Client as having been undertaken, and is not subsequently paid by another Agency which may take over the administration of that engagement.

 

(ii) Failure of the Agency to Honour Business Contractual Arrangements

The loss of fees suffered by a Designated Member where the contracted role is not as described by the Agency and/or contracted for by the Designated Member and the Designated Member’s contract is terminated by the Agency; or the Agency terminates without the required notice period stated in the contract; or the contracted role does not exist or is withdrawn after the contract is signed but before the on-site date and the fees are not otherwise capable of being recovered.

 

(iii) Business Failure of the Designated Member’s End Client

The loss of fees suffered by a Designated Member where an End Client is subject to bankruptcy order or liquidation whilst a Designated Member is engaged on an assignment and as a result that Designated Member is not paid for work, which has been verified by the End Client as having been undertaken, and is not subsequently paid by another entity which may take over the administration of the End Client.

 

(iv) Business Failure of the Designated Member’s Umbrella Company

The loss of fees suffered by a Designated Member where an Umbrella Company is subject to bankruptcy order or liquidation whilst a Designated Member is engaged on an assignment and as a result that Designated Member is not paid for work, which has been verified by the End Client as having been undertaken, and is not subsequently paid by another entity which may take over the administration of the Umbrella Company’s Business.

 

(v) Enquiry Interruption Cover

Enquiry Interruption Cover is provided to the Designated Member in respect of any fee earners who are taken away from the business to attend visits with HMRC and/or the Designated Agent in the event that the Designated Member is under HMRC enquiry.

  

(vi) Extended Absence Cover

Insurers agree to make a single payment to a Designated Member who is absent from work due to an unplanned illness or operation as certified by a doctor or hospital for a continuous period of 3 weeks or more. Any period of self certification does not form part of the absence period and the Designated Member must have commenced their engagement a minimum of 4 weeks prior to the unplanned absence.

 

(vii) Jury Service

Insurers agree to indemnify the Policyholder for claims made on its policy in connection with loss of earnings by Designated Members as a result of Jury Service providing the court requires the Designated Member (or Designated Member’s employee) to be in attendance or requires the Designated Member to be available on specified days. 

 

Designated Agent

Markel Tax or Accountax Consulting, trading divisions of ATCS, the consultancy service providers appointed by Insurers to act for the Policyholder under the terms of IPSE’s Professional Expenses Insurance Policy and named in the Schedule.

 

Designated Member

A company, firm, partnership, organisation or individual who is a fully paid up Plus Member of the Policyholder’s organisation and who has agreed with the Policyholder to be designated for the purposes of the Policy.  The Policyholder shall make a list of such members available to MT upon demand.

 

End Client

The organisation at which the Designated Member has been engaged to provide services and whose validation of time sheets (or other method of certification) is required to determine the value of any outstanding fees due to the Designated Member in the event of a claim.

 

Insurers

Markel International Insurance Company Limited, 20 Fenchurch Street, London EC3M 3AZ bound pursuant to a binding authority with Markel Protection Group Limited. Unique market reference B6027APG2014001 (or renewal or replacement thereof).

 

 

Limits of Indemnity

 

Aggregate Limit

This Policy has an aggregate limit of £750,000 per annum to cover all claims made in any one Period of Insurance.  In the event one or more Agencies fails and the value of all of the claims made during the Period of Insurance exceeding the aggregate, the maximum pay-out would be apportioned accordingly and no further claims would be accepted.

 

Individual Agency/End Client/Umbrella Company Aggregate Limit

The amount payable in respect of claims made in connection with the failure of any one Agency or End Client in any one Period of Insurance is £150,000. 

The amount payable in respect of claims made in connection with the failure of any one Umbrella Company in any one Period of Insurance is £50,000. 

If the value of the claims exceeds the aggregate, the maximum pay-out would be apportioned accordingly and no further claims would be accepted.

 

Individual Designated Member Limits

The amount payable in respect of any claim made by a Designated Member in any one Period of Insurance in connection with the failure of an Agency or End Client is £10,000. 

The amount payable in respect of any claim made by a Designated Member in any one Period of Insurance in connection with the failure of an Umbrella Company is £2,500. 

If the value of the total number of claims in the event of an Agency failing exceeds the aggregate of the Individual Agency Limit or the overall Policy Aggregate Limit, the maximum pay-out would be apportioned accordingly and no further claims would be accepted.

 

Period of Insurance

The period for which Insurers agree to provide this insurance, as shown in the Schedule.

 

Plus Member

A Designated Member who has paid the relevant fee to the Policyholder for Plus Membership.

 

Policyholder The  Association of Independent Professionals and the Self Employed Limited trading as IPSE, Heron House, 10 Dean Farrar Street, London SW1H 0DX.  

 

Territorial Limits The jurisdiction of the revenue authority conducting the dispute or investigation must be within the United Kingdom of Great Britain and Northern Ireland excluding the Isle of Man and the Channel Islands.

 

Umbrella Company A company which employs temporary workers who typically work at the premises of different end clients and which for the purposes of this policy must be compliant with PAYE regulations and only paying expenses where these are genuinely allowable and must not be operating expenses schemes or loan arrangements designed to artificially reduce the tax burden upon the umbrella employee.

 

VAT The amount of the Business Interruption Losses will be paid net of VAT, as the payment constitutes a compensation payment.  The Designated Member can claim bad debt relief to recover the VAT from HMRC.

 

Waiting Period A period of 60 days from the date from which a Designated Member becomes a fully paid up Plus Member of the Policyholder.  The Waiting Period of 60 Days from the date from which a Member joins as, or upgrades to, Plus membership during which a claim under this business Interruption Policy will not be accepted.  Any losses arising before the commencement of the Waiting Period, or in the Waiting Period itself will not be accepted.

 

 

COVER

Insurers agree to indemnify the Policyholder against Business Interruption Losses incurred by the Designated Member in connection with:

 

Section 1 – Business Failure of the Agency

The loss of fees suffered by a Designated Member where an Agency is subject to bankruptcy order whilst a Designated Member is engaged on an assignment and as a result that Designated Member is not paid for work, which has been verified by the End Client as having been undertaken, and is not subsequently paid by another Agency which may take over the administration of that engagement.

 

The losses will be limited to hours/days worked which the Agency was due to reimburse and will not include expenses that may have been incurred at the request of the End client, which were due to be reimbursed by the End Client.

 

All reasonable attempts must be made to pursue the debt and seek reimbursement from the Agency and any claim must take into account amounts recovered from the administrators or the courts.

 

Section 2 – Failure of the Agency to Honour Business Contractual Arrangements

The loss of fees suffered by a Designated Member where:

  • the contracted role is not as described by the Agency and/or contracted for by the Designated Member and the Designated Member’s contract is terminated by the Agency; or
  • the Agency terminates without the required notice period stated in the contract; or
  • the contracted role does not exist or is withdrawn after the contract is signed but before on-site date.

 

Provided that:

  1. the contractor can show that the reason for the role being terminated is not as a result of the Designated Member’s own actions and that there has been a loss of earnings because:
  2. another assignment has been turned down in favour of the engagement which has been terminated prematurely;
  3. the replacement assignment is at a lower rate;
  4. costs have been incurred that cannot be reclaimed.

 

b) the Event giving rise to the business Interruption Losses did not arise either before or in the Waiting Period.

 

Section 3 – Business Failure of the Designated Member’s End Client

The loss of fees suffered by a Designated Member where the Designated Member’s End Client is subject to bankruptcy order or liquidation whilst a Designated Member is engaged on an assignment and as a result that Designated Member is not paid for work, which has been verified by the End Client as having been undertaken, and is not subsequently paid by another party which may take over the administration of that End Client’s Business.

 

The losses will be limited to hours/days worked which the End Client has authorised and certified as having been undertaken by the Designated Member.

 

All reasonable attempts must be made to pursue the debt and seek reimbursement from the End Client and any claim must take into account amounts recovered from the administrators or the courts.

 

Section 4 – Business Failure of the Designated Member’s Umbrella Company

The loss of fees suffered by a Designated Member where the Designated Member’s Umbrella Company is subject to bankruptcy order or liquidation whilst a Designated Member is engaged on an assignment and as a result that Designated Member is not paid for work, which has been verified by the End Client as having been undertaken, and is not subsequently paid by another party which may take over the administration of the Umbrella Company’s Business.

 

The losses will be limited to hours/days worked, which the End Client has authorised and certified as having been undertaken by the Designated Member.

 

All reasonable attempts must be made to pursue the debt and seek reimbursement from the Umbrella Company and any claim must take into account amounts recovered from the administrators or the courts.

 

Section 5 – Enquiry Interruption Cover

The loss of fees suffered by a Designated Member in respect of fee earners who are taken away from the business to attend visits with HMRC and/or the Designated Agent during the course of an HMRC enquiry which has been accepted under IPSE’s Professional Expenses Policy.  Examples of meetings will include a meeting at HMRC’s offices, meeting with the Designated Agent to prepare for and attend a Tribunal.

The visit/meeting must be requested or authorised by the Designated Agent.

In order to arrive at the daily amount payable, the member will provide details of the length and value of the current engagement from which it will be possible to calculate a daily rate.

 

Section 6 – Extended Absence Cover

Extended Absence Cover is provided to IPSE Plus and IPSE Umbrella Company Members in respect of fee earners who whilst in an engagement which commenced a minimum of four weeks prior to any unplanned absence due to ill health and who are absent from the business for a continuous three weeks or more due to an unplanned illness or operation as certified by a doctor or hospital (i.e. any period of self certification does not form part of the absence period). 

The IPSE’s policy will make a single payment of £2,000 to the member’s business in respect of the first three full and continuous weeks that a member is certified as being unfit to work by a doctor or hospital. 

 

Section 7 – Jury Service

Insurers agree to indemnify the Policyholder for claims made on its policy in connection with loss of earnings by a Designated Member as a result of Jury Service providing the court requires the Designated Member (or Designated Member’s employee) to be in attendance or requires the Designated Member to be available on specified days. 

(i) Jury Service Allowance Plus Members

The Jury Service Allowance will be limited to a maximum of 10 days at £500 per day less a deduction of any amount recovered from the relevant court. In order to arrive at the daily amount payable, the member will provide details of the length and value of the current engagement from which it will be possible to calculate a daily rate.

(ii) Jury Service Allowance Umbrella Company Members

The Jury Service Allowance will be limited to a maximum of 10 days at £250 per day less a deduction of any amount recovered from the relevant court. In order to arrive at the daily amount payable, the member will provide details of the length and value of the current engagement from which it will be possible to calculate a daily rate.

 

Waiting Period

There is a “Waiting Period” which applies to all Sections of Cover. 

 

 

LIMITS OF INSURERS’ LIABILITY

The maximum liability of Insurers under this Policy in respect of any one claim and in aggregate in respect of any one Designated Member in the Period of Insurance shall be limited to the respective amounts specified below:

 

Section 1: Business Failure of the Agency:

(i) Individual Designated Member Limit £10,000;

(ii) Individual Agency Aggregate Limit £150,000;

 

Section 2: Failure of the Agency to Honour Business Interruption Arrangements, Limit £1,000;

 

Section 3: Business Failure of the Designated Member’s End Client £10,000

(i) Individual Designated Member Limit £10,000;

(ii) Individual End Client Aggregate Limit £150,000;

 

Section 4: Business Failure of the Designated Member’s Umbrella Company £2,500

(i) Individual Designated Member Limit £2,500;

(ii) Individual Umbrella Company Aggregate Limit £50,000;

 

Section 5: Enquiry Interruption Cover £500 per day subject to a maximum limit of £1,500 per member

 

Section 6: Extended Absence Cover £2,000 after a three week continuous absence

 

Section 7: Jury Service Cover

  1. Plus Members £500 per day subject to a maximum limit of 10 days Jury Service or £5,000
  2. Umbrella Company Members £250 per day subject to a maximum limit of 10 days Jury Service or £2,500

 

Aggregate Policy Limit £750,000 in respect of all claims made.

 

EXCLUSIONS

Insurers shall not be liable to provide indemnity hereunder in respect of:

  1. any claim made, brought or commenced outside the Territorial Limits;
  2. any claim where the Business Interruption Losses are capable of being reimbursed under any other policy or certificate or undertaking;
  3. any claims brought within the Waiting Period in respect of claims in connection with the Business Failure of the Agency, End Client or Umbrella Company;
  4. any cause or event occurring prior to or existing at inception of this Policy, or at the time a Designated Member acquired the right to cause the Policyholder to make a claim under the terms of this Policy, which the Policyholder or Designated Member knew, or ought reasonably to have known, was likely to give rise to a claim;
  5. claims for work incurred after the administration or the bankruptcy of the Agency, End Client or Umbrella Company has been formally announced or where it would be reasonable to believe that the Agency, End Client or Umbrella Company is in financial difficulty;
  6. claims for fees which have not been invoiced in accordance with the Agency’s or End Client’s procedures or the time limits within which the Agency or End Client will accept an invoice from the Designated Member in respect of work undertaken;
  7. payments which are delayed by the Agency or End Client where the Agency or End Client is disputing the amount due or the quality of the services provided by the Designated Member. 
  8. amounts which have been reimbursed by other parties such as the courts or any Agency, End Client or Umbrella Company which has taken on the assignment and agreed to pay all or part of the outstanding amounts in respect of claims in connection with the failure of the Agency to honour its Business Interruption obligations where:
    1.  another engagement is found either through an Agency or the endeavours of the Designated Member within 4 weeks of the original engagement being scheduled to begin.
    2. the commencement date of the engagement being delayed by less than 4 weeks
    3. sub-standard work has been performed by the Designated Member
  9. claims from a designated member who is employed by an Umbrella Company which operates an expenses scheme or offers remuneration via loan arrangements or any other scheme designed to artificially reduce the tax burden upon the umbrella employee.
  10. In respect of claims in connection with the Extended Absence Policy where the Designated Member is absent due to a planned operation, medical procedure or other scheduled absence arranged before the contract commenced.

 

11. CORONAVIRUS (COVID-19)

Insurers will not cover any claim for any loss that is caused by or arises in any way from

  • Coronavirus (COVID-19)
  • severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2)
  • a mutation or variation of SARS-CoV-2
  • a threat, fear or likelihood of infection with any of the above

Note: For any Plus member who joins on or after 16 March 2020, or any Standard member who upgrades to Plus membership on or after 16 March 2020, please note that we are unable to cover any claim for any loss that is caused by or arises in any way from Coronavirus (COVID-19), severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2), a mutation or variation of SARS-CoV-2 or a threat, fear or likelihood of infection with any of the above.  Anyone who was a valid Plus member as at 15 March 2020 will be covered as normal.

 

GENERAL CONDITIONS

 

1.         Due Observance

The due observance of and compliance with the terms, provisions, exclusions and conditions of this Policy insofar as they relate to anything to be done or complied with by the Policyholder shall be conditions precedent to any liability of Insurers to make or continue to make any payment hereunder.

 

2.         Cancellation

This Policy may be cancelled at any time on the written instructions of the Policyholder and the premium shall be adjusted on the basis of Insurers receiving the customary short term premium save that there will be no refund of premium if the Policyholder has notified a claim to MT during the Period of Insurance. This Policy may also be cancelled by Insurers giving 30 days’ notice to the Policyholder and the premium shall be adjusted on the basis of Insurers receiving or retaining pro-rata premium.

 

3.         Disagreements

In the event of any disagreement between the Policyholder and MT acting on behalf of Insurers both parties shall agree to the appointment of a suitably qualified referee to decide the matter.  If there is no agreement on a referee, an appropriately qualified person shall be appointed by the President of the Chartered Institute of Arbitrators. The referee’s fees shall be paid by the party against whom the decision is made but if the decision is not clear the referee shall have the power to apportion costs.  The Policyholder’s costs in preparation for and representation at meetings with the referee shall not be recoverable under this Policy.

 

4.         Designated Member Resignation

If the Designated Member ceases to be a member of the Policyholder prior to or during the course of any claim or proceedings, Insurers reserve the right to deny or withdraw cover.

 

5.         Insolvency

If the Policyholder or the Designated Member becomes insolvent during the course of any claim or legal proceedings to which Insurers have consented, Insurers reserve the right to withdraw their consent to continue to pursue the claim.   Where the Policyholder or the Designated Client enter into a voluntary liquidation and an office holder or receiver within the meaning given by the Insolvency Act 1986 or the Companies Act 2006 is appointed, Insurers reserve the right to withdraw consent for the Designated Agent to continue to act under the terms of this Policy.

 

6.         Minimising Claims or Proceedings

The Policyholder and the Designated Member must use every endeavour and take all reasonable measures to minimise the likelihood of a claim being made under the terms of this Policy and use every endeavour and take all reasonable measures to minimise the cost and effect of any claim under this Policy.  Insurers reserve the right to withdraw cover in the event the Designated Member has not given the Policyholder full co-operation and information including a full and truthful account of the Designated Member’s affairs and all relevant documentary or other evidence in the Designated Member’s possession. The Policyholder shall ensure that the Designated Member provides, obtains or executes all documents as necessary and attend meetings or conferences as requested. 

 

7.         Data Protection Act 1998

It is agreed by the Policyholder that any information provided to MT or the Insurer regarding the Policyholder will be processed by the MT or the Insurer in compliance with the provisions of the Data Protection Act 1998 for the purposes of providing insurance and handling claims, if any, which may necessitate providing such information to third parties.

 

8.         Proper Law

The parties are free to choose the law applicable to this insurance contract. Unless specifically agreed to the contrary this insurance shall be subject to the Laws of England and Wales. All Acts of Parliament referred to in this Policy shall include any subsequent amendments, re-enactments or regulations and equivalent legislation enforceable within the Territorial Limits.

 

CLAIMS SETTLEMENT CONDITIONS

 

1.         Insurers’ Consent

Insurers’ consent will be given provided MT is satisfied that there are reasonable grounds for the claim being made.

Insurers’ consent is an undertaking to provide cover to the Policyholder subject to the terms and conditions of this Policy and its Schedule but does not imply that all Business Interruption Losses will be paid.  Expenses incurred by the Designated Member which go beyond the immediate scope of the claim or proceedings fall outside the cover provided by this Policy.

Consent shall be withdrawn and cover denied in the event of facts becoming known which show that a particular claim should not have been brought under the terms and conditions of this Policy and Schedule.  If the Policyholder makes a fraudulent or false claim or request for payment, this Policy shall become void, any premiums shall be forfeited and any payments made shall be recoverable by Insurers.  If the Designated member makes a fraudulent or false claim or request for payment the claim will become void and any payments made shall be recoverable by Insurers.

 

2.         Claims Procedure

a.       Duty to Notify

MT must be advised in writing immediately the Designated Member becomes aware of any cause or event which has or is likely to give rise to a claim under this Policy.  Failure to notify during the Period of Insurance may lead to the claim not being admitted.

 

b.       Claims Consent

In the event of a likely claim the Policyholder shall complete a claim form with the assistance of the Designated Member and send this to MT together with all relevant information.  After consideration of these documents MT will advise in writing whether Insurers consent has been given.  Where consent is given MT will also advise and administer the amount payable in respect of Business Interruption Losses. 

 

c.       Payment of Business Interruption Losses

The payment of Business Interruption Losses is net of VAT and will be made once matters are finalised with the administrators and will exclude any amounts reimbursed under any other policy or certificate or undertaking. 

 

 

Complaints

Markel Tax and the Insurer are dedicated to providing a high quality service and want to ensure they maintain this at all times. If you are not satisfied with any part of the service you have received then you should contact Markel Tax who will do their best to resolve the problem. In the first instance please contact: The Customer Services Manager, Markel Tax, One Mitchell Court, Castle Mound Way, Rugby CV23 0UY Tel: 0345 223 2727

Complaints can also be made online via the website www.Markeltax.co.uk

In the event you wish to pursue matters further you may be able to refer the matter to The Financial Ombudsman Service Exchange Tower, Harbour Exchange Square, London E14 9SR

Tel: 0800 023 4567 Switchboard: 020 7964 1000 Website: www.financial-ombudsman.org.uk

Financial Services Compensation Scheme

The Insurer is covered by the Financial Services Compensation Scheme (FSCS). You may be entitled to compensation up to 90% of the claim in the unlikely event the Insurer cannot meet its obligations. Further information about compensation arrangements is available from the FSCS.

 

 

 

Communications

Initial notification of a claim must be made in writing by first class post, facsimile, email or via the Markel Portal, and be received by Markel Tax within the period of insurance by addressing it to:

Markel Tax, One Mitchell Court, Castle Mound Way, Rugby CV23 0UY

Fax: 0345 223 2728 Email: [email protected] Website: www.Markeltax.co.uk

All notices and communications from Insurers or their representatives to the Policyholder shall be deemed to have been duly sent if sent to the Policyholder or Designated Agent at an address stated in the Schedule (or any endorsement). All notices and communications from the Policyholder or the Designated Agent to Insurers shall be deemed to have been duly sent if sent to Markel Tax at the address above.

 

Markel Tax

19.03.20