Tax on insurance premiums increases
From June 2017, tax on insurance premiums rises to 12 percent. This extra 2 percent increase applies to all new insurance policies and renewals starting on or after 1 June and any mid-term policy changes after that date which will be taxed at the increased rate.
Industry experts predict that the impact of the additional tax rise could add an extra £32 a year to the average comprehensive motor policy for two cars or £52 a year on a typical medical insurance policy.
If you’re running or managing a commercial haulage business, there will be an impact on all your commercial insurance premiums. While it can be tempting to underinsure, reduce or cancel insurance cover, industry experts recommend having detailed discussions with your broker, to make sure you do continue to have robust insurance cover in place.
Here are two examples, illustrating what could happen without insurance cover for Directors and Officers.
Road Risk – Driving Practices
After a fatal accident involving one of the company’s vehicles, a prosecution was brought against the Transport Director. It was alleged that the company’s practices, designed and implemented by the director, often left the drivers tired and unfit to drive. The tiredness of the driver involved in the incident was deemed to have been a major contributing factor in causing the accident. The director had to fund his own defence costs.
Road Risk – Unroadworthy Vehicle
Following a road traffic accident, the company’s vehicle involved was found to have
been unroadworthy. The transport manager responsible for overseeing the servicing and maintenance of all the company’s vehicles was prosecuted. The company itself was named as a co-respondent for failing to makes such checks as were required, and to put sufficient safeguards in place, to ensure the roadworthiness of its vehicles
At Andrew Bourne & Co, our team spends time getting to know how your commercial haulage operation works. We’ll work with you to create a bespoke insurance solution that’s responsive to your business while keeping your premiums as low as possible. If you need advice about commercial insurance, please call David Crowther or one of the team at Andrew Bourne and Co. on 0116 272 0770 today.