16th August 2010


Appendix 1


The schedule to the policy contains the features that are specific to your insurance. It is not uncommon for errors to be made in the schedule of a policy and they can lead to disputes over coverage at the time of a claim.

The example shown below demonstrates some of the errors typically found in a Schedule.

Here are the answers:-

  1. Policy number: 867SY391 
    Insured: Smith and Smth Insurance Brokers Ltd. 
    Smith is missing a letter i.
  1. Address: 38 High Street, Ellstead, Leicestershire LE3 7HR 
  2. Premium: £3,8560.00 +IPT £192.80 = £4048.80 
    The premium has one too many figures and the VAT sum is wrong; it should be £1,928.00 making a total of £5,784.00 
  3. Period of Insurance: From 31st November 2007 to 31st November 2008 (both dates inclusive) 
    There are not 31 days in November. 
  4. Limit of Indemnity: £2,000, 00 each and every one claim and in all including costs and expenses 
    The sum insured is missing a “0” and the word “one” should not appear in the phrase. 
  5. Excess: £25,000 each and every claim including costs and expenses 
    Including costs and expenses is not a mistake as such but it is not in the Insured’s best interests, if it can be negotiated out. 
  6. Business Activity: General Insurance 
    What does this mean? Broking . underwriting, Advice only. It is sloppy drafting that can lead to a dispute. 
  7. Territorial Limits: Worldwide Excluding Europe USA and Canada 
    Europe should not be in this clause. It would include the UK and therefore exclude any cover at all. 
  8. Jurisdiction Limits: UK Courts only
  9. Special Conditions: 
    – Excluding liability for work carried out by Smith and Smythe 
    – Excluding liability as Agent of Insurer 
    – Warranted Insured supervises all FSA activity 

    Smythe should read Smith 

    What is meant by “Agent of Insurer”? This may intend to exclude underwriting authority work but in fact it could exclude all work because brokers are all, at some time, the Agent of an insurer. 

    What is intended by this Warranty? Is it practical and what supervision and of whom? 

  10. Proposal dated: 20 th September 2006 
    The proposal form would have been completed in September 2007

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