FAQ

Professional Indemnity Insurance FAQ

You can find the answers to our most frequently asked questions below. These answers relate to Over Seas Work Cover Personal Indemnity insurance.

What is professional indemnity?

Professional indemnity business insurance protects you for sums you have to pay as compensation to your clients because of problems with your work. These are the legal names given to the most common claims:

• Negligence: failing in your ‘duty of care’ to your client – perhaps giving incorrect advice or making a mistake in your work
• Intellectual property: infringing copyrights, trademarks or broadcasting rights. Includes any imitation or passing your product/service off as another’s
• Loss of professional documents/data: includes damaged, missing or stolen software belonging to a client or business
• Dishonesty: perhaps the most damaging claim a company has to face, such as an employee stealing money

How will a Over Seas Work Cover Professional Indemnity policy protect me?

Professional indemnity insurance will offer cover for compensation you may need to pay to correct a mistake or cover any legal costs if a client claims bad service or advice. It can also cover your legal costs or any subsequent damages awarded.

If you need to claim, let us know as soon as possible. Prompt action could minimize the problem, or avoid unnecessary cost and distress. Other benefits include:

• Direct access to our professional, experienced and customer focused claims team
• Our claims team have access to specialist lawyers if we need to defend your claim

You must not reveal that you have professional indemnity insurance to a client in the event of a claim as it could prejudice our position.

Once we have established your claim is valid, we commit to work hard to resolve it and to pay promptly.

What level of professional indemnity cover should I buy?

Ask yourself how much money is at stake. How big is the contract or the project? How big is your client? If the worst came to the worst, what level of cover would you need to pay your defense costs and the maximum compensation that might be awarded against you?

Does Over Seas Work Cover policy provide cover for work carried out abroad?

Please contact us so that we can discuss your requirements.

When should I let you know about a possible professional indemnity claim?

As soon as you realize that a claim might be heading your way. Prompt action could minimize the problem, or avoid unnecessary cost and distress. It’s also a standard condition of all professional indemnity policies. In fact, insurers may reject a claim if they feel it could have been avoided, or at least made less damaging, by early notification.

Let us know, too, if you receive a complaint from a client or realize you have slipped up somewhere and can’t easily resolve the problem. Or you receive a series of escalating complaints on a project, or if a client withholds payment to you after a complaint. Or if you become aware of a shortcoming in your work that you can’t easily put right.

Can I increase the level of indemnity on my PI policy mid-term?

You can make changes to your policy at any time, so just tell us whenever you want to increase or decrease your level of indemnity.

Am I still covered if an employee working for me makes the mistake?

Yes, the policy will cover claims against you due to mistakes made by employees. If you sub-contract work to another company, like a freelancer or a consultant, the policy will also cover claims against you due to their mistakes. It’s sensible to make sure that they have professional indemnity insurance too though after all you might want to make a claim against them if they let you down.

How do I make a claim?

Please contact us for more details.

Can I claim on the Over Seas Work Cover policy even if my client hasn’t made a claim against me?

Yes. Our professional indemnity policy is unusual in this respect. It recognizes that prevention is better than cure and if you rectify a problem before the client makes a claim against you, you can avoid being taken to court and perhaps save your working relationship. That’s why it’s important to notify us as soon as you’re aware something has gone wrong. Please contact us for more information.

How do I cancel my policy?

Just let us know – there’s no cancellation charge, although you will have to give us 30 days notice and pay the premium due up to the cancellation date.

What information do you need to give me a Over Seas Work Cover quote via email?

We’ll need to know:

• Your profession or industry (so we can offer you a tailored policy)
• The level of cover you’d like
• Your annual turnover, annual gross income, annual fee income or (if the business is just starting up) your estimated first year’s revenue
• Your business name, a contact name and a valid email address to send your policy to
• Your business trading address
• A few things about your business activities and previous claims history
• The date you want cover to begin (the inception date)

To make the process as easy as possible, please have this information to hand when applying.

Do I have to renew my policy?

All Over Seas Work Cover Professional Indemnity insurance policies are continuous policies so you are covered as long as you keep up your Direct Debit payments.

Prior to the anniversary of your policy start-date, Over Seas Work Cover will write to you with a document called Duty of Disclosure Reminder. It will contain all the information you gave us when you took out the policy and if there are no significant changes to your circumstances, you don’t have to do anything – your cover will remain in place. We will automatically adjust your property cover amount insured in line with any increase in nationally published indices.

If there are any changes to be made, just let us know as soon as possible, as it may affect the terms of your policy.

Can I take out PI just for the time a project lasts?

You can, but PI insurance only applies while you have a policy in place – cover ceases the moment you cancel the policy.

If you don’t have a policy in place, claims that arise from work done in the past will not be covered.

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Health Insurance FAQ

Buy health insurance if you want to protect yourself or your family, if you suffer an illness or need to consult a specialist for diagnosis and require private treatment. The advantages of being treated privately are:

• You will often be treated quickly
• You may get access to more experienced consultants and specialists
• If you need a hospital stay, you can stay in a private hospital where the food may be better and the staff is well trained.

How do I choose the right cover?

When looking at cover, it is useful to know that treatment is categorized in the following way:

• In-patient treatment – Treatment which, for medical reasons, means you have to stay in hospital overnight or for longer
• Day-patient treatment – Treatment which, for medical reasons, means you have to go into a hospital or day-patient unit because you need a period of clinically-supervised recovery. However, you do not have to stay overnight.
• Outpatient treatment – Treatment given at a hospital consulting room or outpatient clinic where you do not go in for day-patient or in-patient treatment.

A large variety of schemes are available – from low cost schemes, offering limited cover, to those which offer wide-ranging cover and benefits. Most schemes will offer cover for the first two categories listed about but not always outpatient treatment.

You will need to settle on what sort of cover you want; there are a number of factors you will need to consider. Below are just two examples:

• Do you want your cover to include seeing a specialist as an outpatient?
• Do you want a choice of hospitals, or would you be happy to receive any treatment that you might need in a hospital available from a limited range selected by your insurance company?

What is covered and what is not covered?

It is important to remember, health insurance is designed to cover treatment for curable, short-term illness or injury (acute conditions). Therefore, some illnesses and treatments are never covered and these are common to most schemes.

Inclusive:

• Surgery as an in-patient or day-patient
• In-patient tests
• Cover for treatment of short-term (acute) medical conditions
• Hospital accommodation and nursing

Inclusive Generally:

• Conditions you had before taking out the health insurance (know as pre-existing conditions)
• Cover for long-term illnesses which cannot be cured (know as chronic conditions)
• Accident and emergency admission

Non-Inclusive of and outside the scope of your cover:

• Experimental treatment
• Self-inflicted injuries
• Out-patient drugs and dressings
• HIV/AIDS
• Infertility
• Drug abuse
• Out-patient drugs and dressings
• Organ transplant
• Mobility aids
• War risks
• Normal pregnancy
• Gender reassignment (sex change)
• Cosmetic surgery
• Preventive treatment
• Kidney dialysis
• Experimental drugs
• Injuries arising from dangerous hobbies (hazardous pursuits)
• Self-inflicted injuries

Each health insurance provided will give you a policy summary and a full policy document either before or immediately after you sign the contract. The policy summary document sets out any significant and unusual limits of the policy.

How much does health insurance cost?

Health insurance gets more expensive as you get older. The number, sophistication and cost of treatments to improve quality of life is increasing steadily. Most health insurance polices aim to cover these treatments as they become standard medical practice and available privately. By the same token, the sophistication and complexity of tests used to diagnose illness and injury are also increasing. Such tests are becoming more widely available, especially in private hospitals. As with standard insurance polices, no claims bonus/discount and payment methods can also affect the cost of your policy. In addition to these factors, the combination of what you choose to have covered and what you choose not to have covered will affect the premium you pay for your health insurance policy.

Travel Insurance FAQ

You can find the answers to our most frequently asked questions below.

These answers relate to Over Seas Work Cover Travel Insurance. Questions about getting a quote, amending a quote, and renewals.

What information do you need to give me a Over Seas Work Cover quote via email?

• Who is sponsoring the trip?
• Your address
• Your destination
• Departure date
• Return date
• Cost of trip
• Policyholder birthdate
• Policyholder dependents travelling.

The level of cover you preferHow does the renewals process work?

At least 21 days before your policy is due to expire; you will receive a renewal email from us detailing your cover and premium for the following year. If your cover requirements have changed during the past year, (e.g. your medical information has changed) it is your responsibility to notify us of the change before the renewal date.

What if I need to renew my policy while I’m away?

If you need to renew your policy whilst you are travelling, prior to your departure you can arrange for your cover to renew on your renewal date.

What if I want to cancel / amend my policy?

If you need to cancel or amend your policy contact us to speak to one of our team. You can cancel your policy within 14 days of purchase. If you have travelled or made a claim within these 14 days we are entitled to recover costs for services used.

Questions about your cover

Can my children travel independently?

Yes. Under our family policies we cover children who are 23 or under and still in full time education. If your children are included on your travel policy, then they can travel independently from the main policyholder. They are covered up to the same limits as the main policyholder for all covers except cash, personal accident and collision damage excess waiver. Contact us for full details

I have pre-existing medical conditions – will you cover me?

We can cover a wide range of pre-existing medical conditions under our travel insurance product. Customers with pre-existing medical conditions can call us and speak directly to one of our experienced medical personnel who will determine the correct level of cover for your needs. Contact us for more information. We strongly recommend that you do not travel abroad without full emergency medical cover.

Is there a limit to the number of days that I can travel for or the length a trip can be?

We offer travel insurance policies with a single trip length limit of 31 or 365 days. This means that any one trip can last for a maximum of 31 or 365 days (depending on the duration selected). There is no limit to the total number of trips that can be taken.

What are the age limits on the policy?

We have a maximum age limit of 69 on our standard Over Seas Work Cover Travel Insurance product; however, the minimum age limit for the main policyholder is 16. Under 16’s can be covered on family policies. Contact us for more information.

What happens if Earthquakes disrupt my travel for example?

If your travel is disrupted natural catastrophes leading to grounded flights, a Over Seas Work Cover travel insurance policy will cover flight cancellations, denied boarding and delayed or missed connections. The cover is also provided for extra transport and accommodation costs.

What does Over Seas Work Cover business travel insurance cover me for?

We offer business travel insurance as an extension to our core travel insurance product, to cover you whilst travelling on business trips. Cover is also provided for the replacement of any business samples and documents that you take with you, any portable business equipment such as a laptop or projector, any conference fees that you lose and cannot recover, and the cost of reasonable additional travel and accommodation costs for transporting a close business associate from to any pre-arranged meetings that you miss if you fall ill whilst travelling.

What if I have special travel requirements that do not fit within your standard policy?

We cannot cater for those with complex medical requirements, who want to do extreme sports on holiday, or those who are over 69 with our standard product, however, for more information, please contact us.

Questions about your policy

Goody Bag Goody Bag is where we pay cash settlement if your luggage is lost or damaged, without any reductions in the value for wear and tear to the original item.

When does the policy and cover start?

Cancellation cover starts at the time of booking a trip and ends when you leave your home to commence the trip. All other covers start when you leave your home to commence your trip and last for its duration until you return home.

What is financial failure protection cover?

There have recently been several high profile incidents where airlines and travel providers have gone bankrupt, leaving travellers stranded in foreign countries, or having to foot the bill for a holiday they never went on. Travellers on package holidays are protected in this eventuality, as it is the tour operator’s responsibility to provide a solution, whereas travellers who have booked their flights and accommodation separately may not be. Financial failure cover protects you against financial loss if you have booked a holiday that is not part of a package deal and the provider goes bankrupt.

Marine Insurance FAQ

What is Transit insurance?

Transit Insurance covers goods and or merchandise while in ordinary course of transit from one location to another.

What is a bill of lading?

A bill of lading is the most common form of affreightment which serves three purposes: it is the contract of carriage between the ship-owner and shipper, outlining the liability of carrier, the ship owner’s receipt for the goods; and the document of title to them (as a negotiable document, interest can be assigned to a third party through the bill of lading)

My transit carrier provides insurance, why do I need to buy insurance?

They do not unless you purchase specific cargo insurance from them, in which case the coverage provided is usually insufficient and ends up costing you more. Transportation carriers are not obligated to pay for your losses that occur beyond their control. Also, international law limits the liability of ocean carriers. Air carriers similarly limit their liability and truckers, rail carriers, and warehouse owners limit their liability for loss according to their tariff. Your own transit policy ensures sufficient limits of liability, known coverage conditions and consolidated claims handling. Additionally, your own policy will be a less expensive alternative to transit carrier provided insurance.

What is the difference between inland transit and ocean cargo coverage?

Inland transit covers domestic transits via land conveyances and/or air shipments (domestic vessel transits are usually insured under an Ocean Cargo Policy). Ocean Cargo Insurance provides coverage for International Ocean and/or air shipments on a warehouse-to-warehouse basis (including the land connecting conveyance transits).

What does Warehouse to Warehouse mean?

Coverage in transit Insurance is often referred to as Warehouse-to-Warehouse. It is important to note however that coverage is actually determined by the terms of sale used in each transaction (F.O.B., etc.). Coverage is warehouse to warehouse only when the ‘Assured’ is responsible to provide such coverage based on the sales terms. This coverage attaches at the point at which transit commences, and terminates when the cargo is delivered to the final destination or after a specific period of time, whichever occurs first. Both the attachment and termination points may be far inland, many miles from the ports of loading and discharge.

What is an open marine cargo policy?

An open policy is one, which is open until canceled. There is no expiration date, but rather an anniversary date, which is used as a reference point for billing, rate changes, etc.

Why do I need War Risks Insurance?

War Risks Insurance is a separate contract/policy, which offers protection against war perils (stray mines and torpedoes, terrorist acts at sea, etc.), while the cargo is at sea. Combined with the Cargo Policy, there is coverage for Missing Vessels in one policy or the other. Consideration for Strikes riots and Civil Commotions (SR & CC) coverage is included in the War Risks premium. The SR&CC coverage is added on to the Cargo Policy by endorsement.

What is a General Average?

There are three elements required which establish a General Average:

• A peril to the common venture For example: A storm at sea, which threatens the vessel itself, cargo carried on board (some of which may be yours) as well as the lives of the passengers and crew. Together these constitute the common venture.
• An extraordinary sacrifice or expenditure to avert the peril. This could involve jettisoning cargo to lighten the vessel, or engagement of a salvage tug to tow the damaged vessel, etc.
• The successful preservation of the venture. If the vessel is not preserved, you may be presented with a conventional marine claim and not a General Average.

In summary, when the vessel owner declares a general average, the vessel owner and all of the cargo interests will share the expenses associated with the general average on a pro-rata basis. These expenses are covered under your Marine Cargo Policy.

What are the Incoterms?

Incoterms precisely define the responsibilities of the buyer and the seller and are recognized as the international standard by custom authorities and courts in all the main trading nations. They are standard trade definitions and are issued by the International Chamber of Commerce. Incoterms reduce the risk of misunderstandings and legal disputes. Incoterms also specify the loading and unloading responsibilities of the buyer and seller. There are 13 Incoterms, each denoted by a 3-letter code. The terms are grouped in four categories based on the first letter in the three-letter abbreviation.

• Under the “E”-term (EXW), the seller only makes the goods available to the buyer at the seller’s own premises. It is the only one of that category.
• Under the “F”-terms (FCA, FAS and FOB), the seller is called upon to deliver the goods to a carrier appointed by the buyer.
• Under the “C”-terms (CFR, CIF, CPT and CIP), the seller has to contract for carriage, but without assuming the risk of loss or damage to the goods or additional costs due to events occurring after shipment or dispatch.
• Under the “D”-terms (DAF, DES, DEQ, DDU and DDP), the seller has to bear all costs and risks needed to bring the goods to the place of destination.

My goods are not at risk so why should I get marine insurance?

It is possible that your goods may be less prone to loss or damage than others, but you still run the risk of a ship sinking, a plane crashing, or some other catastrophic event. It is important to keep in mind that a ship sinks every single day according to maritime statistics. In addition, you are vulnerable to General Average losses. A recent study concluded that a shipper would be involved in a General Average incident once every eight years. This could potentially lead to a business-ending situation without a cargo insurance policy.

What is a marine cargo insurance buyer’s contingency policy?

When the terms of sale include insurance coverage up to the title transfer of goods, the buyer may purchase additional insurance from an insurance provider known as a contingency policy. A contingency policy will provide insurance coverage for the goods once the title has transferred and the goods are no longer covered under the seller’s insurance policy. Should the goods be damaged upon arrival to the buyer and the title has transferred, the policy would pay the damage and the buyer’s insurance company would subrogate against the seller’s insurance.

What is the Lloyd’s of London marine cargo insurance market?

Serving over 200 countries and territories, Lloyd’s of London is known as the premier marine, truck, rail and air cargo insurer in the World. Often misunderstood, Lloyd’s is not an insurance company but is a society of members who underwrite in syndicates on behalf of investment institutions, specialist investors, international insurance companies and individuals.

How do I get a quotation for an all-risk cargo insurance policy?

You only need to fill out a quote request. You can do so online or call us. And we will walk you through the application over the phone. Once we have a completed application, it only takes 2-3 business days for us to respond with a quote.