Private Medical Insurance
Private medical insurance is designed to cover treatment for curable, short-term illness or injury (commonly known as acute conditions). It provides the reassurance of knowing that treatment is available promptly. This can be particularly valuable to small employers as it enables them to better manage employee absence and illness.Different policies will cover different optional treatments. However, some illnesses or treatments will not be covered by any PMI policy. Private medical insurance is arranged for one year at a time.
How do I buy these insurances?
Package or combined policies are available, which provide cover against many of the risks described in the previous section in a single policy document. These policies can be tailored to the requirements of your business. Some businesses may find individual policies more appropriate.
What do I need to think about or ask when buying insurance for a business?
Insurance documentation - When applying for insurance cover, you may be asked to complete a proposal form giving information to enable the insurers to assess your risk. Details will include name, address and business of the proposer, previous losses, and details of the risk to be insured. When completing the proposal form, it is important that all questions are fully answered and all relevant facts concerning the business are disclosed to the insurer. Failure to disclose all relevant facts fully, whether specifically asked or not, might entitle the insurer to treat the policy as invalid.Before cover is granted, the premises may be surveyed by an insurance surveyor to accurately assess the risk. He will draw attention to any hazardous features and advise on ways to improve the risk. Some improvements may be required before the cover is given.
When your proposal is accepted, you will receive a policy document which sets out details of the contract including the scope of the cover and the exclusions and conditions. With motor and employers' liability insurance the law requires evidence of cover to be provided by a certificate of insurance in a prescribed form.
Insurance premium tax - Most types of general insurance are subject to insurance premium tax (IPT), while life insurance, pensions and income protection insurances are not. The premium quoted by the insurer will include the tax where necessary. You are not able to set IPT paid by you against VAT on the goods and services you sell to others.
If you sell cars, electrical or domestic appliances, or holidays, and you also arrange insurance for your customers, then in certain circumstances you may be liable to administer IPT yourself. You should ask your accountant, tax adviser or HM Customs and Excise for details if necessary.