United Kingdom Insurance Information

CIA link to demographic/economic data on the United Kingdom

General United Kingdom Insurance Information

• Compulsory Insurance:
  
  1. Third Party Automobile Liability;
  2. Employer’s Liability;
  3. Nuclear Facility Liability;
  4. Oil Pollution Liability;
  5. Aircraft Operators’ Liability;
  6. Professional Liability / Indemnity for Insurance Brokers, Lawyers / Solicitors.
• Non-Admitted Insurance:
  Permitted except for Third Party Automobile Liability and Employer’s Liability
• Policy Wordings & Rates / Tariffs Controlled:
  None.
• Policy Language:
  English.
• Types of Insurance Restricted to Government Institutions:
  

Workers’ Compensation

• Policy Currency:
  British pound (GBP) though U.S. Dollar insurance is available.
• Currency Restrictions / Exchange Controls:
  None.
• Policy Period:
  Annual. Long Term Agreements (LTAs) with discounts are available generally for 3 to 5 year terms.
• Cancellation Provisions:
  30 day written notice is common. Policy provisions vary so each policy requires review and such cancellation provisions can be negotiated at time of placement.
• Premium Taxes, etc. paid by Insured:
  5% all non-life lines.
• Insurance Companies:
  
• Brokers:
  Most business is handled by brokers and agents. Insureds can purchase insurance directly from Insurers.
• Brokerage Commissions:
  Fire / Property - 15%;
  General / Public Liability - up to 17.5% (negotiable);
  Employer’s Liability - 7.5%;
  Automobile Liability - 10% (negotiable);
  Marine - 20% (negotiable);
  Personal Accident - 15%.
  
• Broker of Record Letters:
  Required for each line of coverage (policy).
• Coinsurance:
  Freely available in the market.
• Reinsurance:
  No restrictions known. No compulsory cessions. There are no withholding taxes on insurance or reinsurance businesses.
• Local Natural Hazards:
  None known.
• Other Information:
  

Property Insurance

• Fire:
  Standard fire perils include - fire, lightning, aircraft, explosion, earthquake, flood, storm / tempest, burst water pipe, riot / civil commotion, malicious damage, vehicle impact.
• All Risk:
  Available.
• Coinsurance:
  100%.
• Blanket Insurance:
  Available.
• Business Interruption:
  UK Loss of Profits and U.S. Gross Earnings forms available.
• Replacement Cost:
  Available.
• Discount for fire protection equipment / systems: Negotiable. Discounts can reach 60%.

Boiler & Machinery / Machinery Breakdown / Engineering

• Wordings:
  Various standard forms with comprehensive extensions of coverage available. Periodic inspections are required.
• Comments:
  Machinery movement and Erection, Plant Hire, Liability, Extraneous Damage, Machinery Business Interruption and Computer Insurance are freely written, without accompanying inspection service.

General / Public Liability

• Available Wordings:
  Comprehensive General / Public Liability. Product Liability should also be included. Product Recall coverage is available in the market.
• Comments:
  Coverage is usually written on an occurrence basis.

Automobile / Motor

• Compulsory Limits:
  Bodily Injury: Unlimited; Property Damage: Sterling250,000.
• Comments:
  Coverage applies to the Insured and any licensed individual driving with the Insured’s permission. Passengers are deemed to be Third Parties. Limits of £1,000,000 for Property Damage are common and advised. Automobile Insurance can only be written by an authorized Insurer and each vehicle must carry a Certificate of Insurance.

Workers’ Compensation

• Comments:
  This Government Scheme covers virtually all employees in the United Kingdom. Employees working abroad have no benefits and special insurances are required. Medical Expenses and Occupational Disease are included. Employees have the right to sue.

Marine

• Available Wordings:
  Clauses of the Institute of London Underwriters apply. War and Strikes risks follow the London scale.

Crime

• Available Coverages:
  Fidelity, Money & Securities, Theft, Burglary, Bonds and a wide variety of other related coverages are available.