With effect from 1/7/16, MUM have replaced Monthly policies with Automatic Annual Renewals, payable monthly. If you have any queries about your risk please contact your underwriter.
Why Automatic Renewals?
There can’t be a better way of doing business with MUM than in a relaxed, hassle-free way where renewals take care of themselves.
With MUM you can provide your professional clients with a policy that:
- Takes out the hassle of completing proposal forms by automatically renewing
- Covers their PI, and liabilities
- Your client pays by interest-free direct debit.
How does it work?
The automatic renewals are designed for small businesses that are not subject to dramatic fluctuation. We will normally offer this to firms that buy Professional Indemnity up to a Limit of Liability of £2,000,000 and with a premium below £3,500. If your client’s policy is outside of this criteria it has been moved to an annual policy with a 0% instalment plan but where renewal is underwritten individually.
It’s a simple process:
- MUM will provide a quote offering terms on a monthly basis. The quote will include a declaration and direct debit form.
- If the client wishes to take out the monthly policy, they must complete both the declaration and direct debit form.
- IMPORTANT – the declaration explains that the premium has been based on the proposal form and any other information that was provided to us, as defined in the Automatic Renewal Endorsement (PI6120). We rely on the insured to inform us promptly of any material changes to the information they have given to us, as there is no annual proposal form.
- Near the anniversary date, MUM will send you (the broker) a reminder of the information declared, so you may remind your client if you wish.
- At the renewal of the policy, MUM will pay your commission for the next year.
- We will require a full proposal form every three years.
The policy will be endorsed with our Automatic Renewal Endorsement (PI6120), which sets out the terms and conditions. Copies of the Automatic Renewal Endorsement (PI6120), Direct Debit and Declaration are on the right for you to download.