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Tax Insurance Requirement Identified
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Once the need for tax insurance is identified, you can submit a request for insurance via your insurance broker or visit Quotes.
When seeking tax insurance cover the following information should be provided: (i) an outline/description of the tax risk, (ii) details and analysis of any facts relevant to the risk (both positive and negative), (iii) a calculation of the financial cover required, (iv) details of what insurance is required (e.g. who is the insured, policy period, limit of liability, etc), and (v) copies of any tax advice in relation to the risk.
Typically a request for insurance will be accompanied by tax advice from a credible tax adviser giving an overview of the risk. The more factual / contextual information and analysis provided, the fewer assumptions we will need to make if we provide a non-binding indication of insurance terms (NBI).
We appreciate that the information provided is sensitive and can enter into confidentiality agreements as required.
Please let us know if you have any other specific coverage requests or requirements and we will consider whether we can accommodate these.
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Submission Review
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Obtaining a quote costs nothing.
We will aim to revert with a non-binding indication of insurance terms or a declinature within 48 hours of receipt of the above information.
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NBI
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If we are able to, we will provide an NBI which will include:
premium quotes for each financial limit of liability requested
We charge a single, up-front premium which is payable once we have gone on risk. Our minimum premium can be as low as £85,000 (or equivalent).
If you also require W&I insurance, we may be able to offer a discount on the W&I premium if we are appointed to underwrite both tax and W&I.
details of our fixed external costs
If appointed to underwrite, we would engage external counsel to assist us with our review. Our external expenses vary according to the complexity/size of the risk and the scope of work required. Typically, our external expenses are £10,000 – £30,000 (or equivalent).
See Appointment below.
our proposed exclusions
Please see our standard exclusions on this page.
key documents that we would require for underwriting
This allows the policyholder to check whether all the necessary information is available.
any key assumptions we have made for the purposes of offering terms
To reduce the number of assumptions and offer the most certainty, it is helpful to provide a fulsome opinion/memo.
a proposed timeline and process for putting the insurance in place
If we are unable to offer terms, we will give an explanation for our declinature. Please see our Risk Appetite for details of the restrictions on what we can offer.
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Appointment
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If you would like to proceed on the basis of our NBI then we will issue an expense agreement for the insured person (or whoever is paying for the policy) to sign which covers our external costs. We will then commence underwriting.
If we have provided a range of quotes, you do not need to confirm which quote you require until the policy is nearly finalised unless it is material to our underwriting.
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Underwriting Process
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Each tax risk and policy is bespoke and there is no one-size-fits-all underwriting process, but typically our underwriting process would commence with a review of all relevant documentation and an initial Q&A process. To the extent necessary, we will circulate a further Q&A based on our review to clarify any material outstanding items. Following this we will then finalise the policy terms.
For a straightforward risk, we can deliver a finalised policy within five business days of receipt of a signed expense agreement and all relevant documentation. If there is commercial pressure to achieve a certain deadline, it may be possible to meet an even more challenging timetable. On average it takes us two weeks to underwrite a tax risk.