Do Ross + Liddell make insurance commission?

Insurance is a regulated activity and as such, to comply with regulations and to ensure we are arranging cover on the correct basis, we employ the services of a broker (to whom we pay a fee). Our broker, in addition to having the knowledge and expertise to place our risk, also has access to all major Insurance companies. Most of the properties we manage are covered under one policy of insurance. Arranging such a contract of insurance is not a straightforward exercise, as this type of policy cannot simply be applied for by completing an application or proposal form.

We can confirm that commission is declared on every certificate of insurance issued to all co-proprietors, and this is detailed on the reverse of the certificate and is noted as 22.5% for all classes of insurance other than terrorism which is 10% based on gross premiums nett of insurance premium tax. Ross and Liddell Limited do not charge our clients a fee for the Insurance Services which we provide in respect of our managed properties. Instead, insurance commission is received in order that we can offset the costs incurred in administering our insurance arrangements, including the issue of Insurance Certificates and all the supporting documentation required to comply with all relevant FCA Regulations, dealing with the common claims and assisting clients with their private claims.

In addition, we are required to guarantee payment of premiums due under the insurance policy and to pay our brokers a fee to secure their market knowledge and experience (so we can ensure a competitive renewal for clients). In the current market we believe that acceptance of insurance commission represents the most cost- effective mechanism for provision of Insurance Services to clients. Towergate (our Insurance Broker) receive remuneration of 7.5% from the Insurer in respect of a work transfer amount for facilitating placement of the R+L insurance portfolio together with the professional advices provided to R+L.