Terms of Business and Demands and Needs Statement

About Direct Commercial Line Limited

Direct Commercial Line Limited is an Appointed Representative of Direct Commercial Limited, Redwing House, Colchester Road, Chelmsford, Essex CM2 5PB.  Direct Commercial Line Limited is authorised and regulated by the Financial Conduct Authority in respect of insurance mediation – Financial Services Register number 553833. Direct Commercial Limited is authorised and regulated and regulated by the Financial Conduct Authority in respect of insurance mediation and consumer credit activities.  Direct Commercial Limited’s Financial Services Register number is 307505.  You can check this on the Financial Service Register by visiting the Financial Service’s website www.fca.org.uk or by contacting the FCA on 0300 500 0597.  Direct Commercial Line Limited is registered in England and Wales no. 03135048. Registered office Redwing House, Colchester Road, Chelmsford, Essex CM2 5PB


Services Provided/Demands and Needs

We are an insurance intermediary and we arrange cover in respect of commercial motor insurance, liability insurance, commercial combined insurance or goods in transit insurance. These products are suitable for commercial clients who wish to take out commercial motor, liability, goods in transit or commercial combined insurance.  Our service includes but is not limited to, arranging your insurance cover and helping you with ongoing changes to your policy.  The sale of this insurance is on a non-advised basis which means that we have not provided you with a personal recommendation as to whether this policy is suitable for your specific needs.  We may ask questions to narrow down the selection of products we provide details on, but you will need to make your own choice about how to proceed.

We act as agent for the insurers who we provide quotations for and deal with a single insurer in respect of each class of insurance when placing your insurance.


The Capacity in Which You are Acting

Any insurance contract you enter into as a result of a quotation provided by Direct Commercial Line Limited is intended to cover activities related to your trade or profession.  By instructing us to place business on your behalf, you are agreeing to these Terms of Business and confirming you are not acting for any purpose outside of your trade or profession.


Insurance Act 2015 and Disclosure of Information

Direct Commercial Line Limited expects you to provide complete and accurate information when you take out your insurance policy, throughout the lifetime of the policy and when you renew your insurance.  If you are unsure about disclosing any information please contact us for guidance.


As a commercial client, under the Insurance Act 2015, you have a responsibility to make a fair presentation of your risk to us.  This means that you must:

  1. Disclose to us every material circumstance which you know or ought to know or, failing that, sufficient information to alert us that we need to make further enquiries; and
  2. Make such disclosure in a reasonably clear and accessible manner; and
  3. Ensure that, in such disclosure, any material representation as to a: (a) matter of fact is substantially correct; and (b) matter of expectation or belief is made in good faith.

A circumstance or representation is material if it would influence a prudent insurers judgement in determining whether to take the risk and, if so, on what terms.  You must also make a fair presentation of the risk to us in connection with any variations, eg changes you wish to make to your policy throughout the policy period and at renewal.


If you fail to make a fair presentation of the risk then this could affect the extent of cover provided or could invalidate your policy.  If you are in any doubt as to whether a circumstance is material then you should disclose it.  Failure to disclose any material information or inaccuracies in the information given could invalidate your insurance cover and mean that part or all of your claim may not be paid.  Always keep copies of correspondence sent or received concerning your insurance.


You are reminded that it is an offence under the Road Traffic Act to make any false statements or withhold any relevant information to obtain a Certificate of Motor Insurance.



Awareness of Policy Terms

You should read your policy documents carefully.  The Policy Wording, Schedule and Certificate of Motor Insurance (when motor insurance is purchased) form the basis of the insurance cover you have purchased.  Please make sure that you understand them and are able to follow their requirements.  Breach of any terms, conditions or warranties may enable your Insurer to terminate your policy, or repudiate a claim under your policy.


Period of Insurance

All policies are for a period of twelve months unless agreed otherwise.



Please check that the cover being provided to you is the cover you need.  Your Policy will be based on the answers you have provided during the quotation process.  It is your responsibility to provide accurate information when you take out, change or renew your insurance policy.  If you make any changes to your policy during the period of cover you will be informed prior to making these changes of any revised policy terms and conditions that may apply.


Please note it is your responsibility to ensure that you are in possession of a valid Certificate of Motor Insurance before you use your vehicle on the public highway.  If your existing cover has expired, no cover will exist until a replacement Certificate has been issued.  Once you have purchased your insurance cover you will be sent an email or letter confirming cover details.  We recommend you keep copies of all communications from Direct Commercial Line Limited and your Insurer.


No Claims Bonus

If you have taken out your policy on the basis of having earned any level of No Claims Bonus (NCB), we require written proof to be sent to us within 14 days of the inception date of your policy.


We recommend sending written proof of NCB by Recorded Delivery to Direct Commercial Line Limited.  Alternatively, you can scan your written proof and email it to us at adam.marsh@dcll.co.uk


If there is any discrepancy noted upon receipt of your NCB and the proof provided does not correspond to the information you provided when you purchased your policy, Insurers will apply the correct information.  Where applicable this may result in an additional premium being charged by your Insurer.  Failure to provide us with valid proof of No Claims Bonus will result in cancellation of the policy.


We only accept No Claims bonus as valid, provided that it is:

  • Previously earned on a relevant vehicle policy only.
  • Previously earned on a policy that expired no more than 2 years prior to the start date of your current policy.
  • Previously earned on a policy that was declared as operating under the same business type/occupation as that of the current policy
  • Issued by the Policyholder’s previous Insurer only.
  • Issued in the Policyholder’s name
  • Earned within the United Kingdom.
  • Shown in years and not as a percentage.
  • Not being used on another policy; No Claims Bonus can only be used on one policy at a time.

Anything outside of the above criteria will not be accepted.



We have no authority to handle claims on behalf of insurers.  In the event of an incident involving a vehicle occurring which may give rise to a claim under your policy, you should notify Insurers as soon as possible using the contact details on your Certificate of Motor Insurance, contained within your policy document.  This service is available 24 hours a day, 7 days a week.  Notification in respect of all other claims should be emailed to adam.marsh@dcll.co.uk who will then advise you of your insurers procedure. Please note that you must report all incidents as soon as possible – late notification could have serious implications on the indemnity of your claim.

Cancellation of Insurance

You may cancel the contract of insurance at any time by requesting cancellation in writing to Direct Commercial Line Limited, Redwing House, Colchester Road, Chelmsford, Essex CM2 5PB, and return the certificate(s) of insurance and any policy document.  For details of any return premium please refer to the Conditions section of the Policy Document.


The Insurer may cancel the contract of insurance at any time by giving seven days notice by registered letter to your last known address, without giving a reason.  Provided that the certificate(s) of insurance and policy document are returned to Direct Commercial Line Limited, Redwing House, Colchester Road, Chelmsford, Essex CM2 5LB, within seven days Insurers will return a pro-rata proportion of the premium but subject to all claims raised being discharged.


Please refer to you policy document for full details on cancellation of your policy.  The policy document shall be final.


Upon cancellation of a policy any refunds may be paid net of policy commission


Payment of Premiums and Refunds

Standard Annual Policy:  Unless otherwise agreed and formalised by a premium instalment plan, all premiums are due on the day cover is arranged, the date the policy is due for renewal, or the date any mid-term adjustment is processed.


Premiums can be paid by Cash, cheque, direct debit or credit card.  Full information about payment options will be given when we discuss your insurance in detail.


If you require an instalment plan this will be arranged by Direct Commercial Limited.  Close Premium Finance Limited (CPFL) will pay the premium to the insurer and you will be responsible for paying the instalments as they fall due.  In the event of payment not being made, you will be sent a 7-day cancellation letter by Recorded Delivery; policy cover will cease from the date advised in this letter.  Any refund due will be off-set against any balance that may still be outstanding on your instalment plan.  Direct Commercial Limited will not refund any premium if you have made a claim, or if one has been made against you during the period of cover.


When applying or taking out credit Direct Commercial Limited will share your data with lenders who will carry out anti-money laundering checks and credit underwriting to assess creditworthiness and affordability to meet their regulatory or business obligations.  Credit checks may include a search of your records (for limited companies this may include directors and the organisation itself) at a credit reference agency.  This type of search will leave a footprint that other lenders will be able to see but not the outcome of the search.  The type of search made should not have a detrimental effect on the credit rating of an individual.  If, when the lender has received the new business transaction, the inception date has already passed, they will collect any payments that would have been due had the transaction been received prior to the inception date as soon as possible.  This will ensure your payment schedule stays on track with the policy period but may mean that the first payment is higher than the rest.


You will have 14 days to cancel your credit agreement.


If you default on your payments, the lender may try to collect the missed payment again together with any default charges.  You will have 14 calendar days to resolve the payment issues and if required set up a new direct debit instruction.  Any missed payments can be made by credit or debit card over the telephone to the premium funding provider or directly into their bank account.  There may be a charge for card payments other than debit cards.  Direct Commercial Limited will be informed of such events and if the default is not resolved the credit for the related transaction will be cancelled.  If you do not make other arrangements with Direct Commercial Limited to pay your premium your insurance policy may also be cancelled.  You will be responsible for any time on risk charge.  If this is cancelled, where any unpaid premiums or charges are due from you under your credit agreement Direct Commercial Limited will recover these from you.


Direct Commercial Limited may keep certain documents such as your Annual Certificate of Motor Insurance whilst they await full payment of the premiums.  In these circumstances, they will ensure that you receive full details of your insurance cover and will provide you with any documents you are required to have by law.  Direct Commercial Line Limited will not accept responsibility for cancellation of insurance by insurers due to late or non-payment of premium by customers.  Instalment deposits are non-refundable.


Road Traffic Act

You are reminded that it is your personal responsibility under Road Traffic Act legislation to ensure that before using or permitting the use of a vehicle on the public highway, you are in possession of a current valid Certificate of Motor Insurance.


Data Protection Act

Direct Commercial Line Limited will hold and process your personal data for arranging or administering cover on your insurance policy.  We may also pass your information onto certain third parties in connection with the administration of the insurance contracts entered into.


We may also, on occasion, use the details we hold about you within our associated companies or pass them to Third Parties so that we may tell you of new products and services which we think may interest you, by telephone, email or post.  If you do not wish to receive any marketing information, please contact us and we will mark our records accordingly.  Under the Data Protection Act 1998 you have rights of access to any personal information we hold about you in our records.  If you have any queries in respect of confidentiality and data protection please contact us.


Anti Fraud Registers

Information relating to your insurance policy will be added to the Motor Insurance Database (MID) managed by the Motor Insurers Bureau (MIB).  MID and the data stored on it may be used by certain statutory and/or authorised bodies including the Police, the DVLA, the DVANI, the Insurance Fraud Bureau and other bodies permitted by law for purposes not limited to but including:

  • Electronic Licensing
  • Continuous Insurance Enforcement
  • Law enforcement
  • The provision of government services and/or services aimed at reducing the level and incidence of uninsured driving.

If you are involved in a road traffic incident (either in the UK, the EEA or certain other territories), insurers and/or the MIB may search the MID to obtain relevant information.  Persons (including his or her appointed representatives) pursuing a claim in respect of a road traffic incident (including citizens of other countries) may also obtain relevant information which is held on the MID.  It is vital that the MID holds your correct vehicle registration number.  If it is incorrectly shown on the MID you are at risk of having your vehicle seized by the Police.  You can check that your correct registration number details are shown on the MID at www.askmid.com.


Conflicts of Interest

There may be occasions when a potential conflict of interest arises.  If this happens we will inform you and obtain your consent prior to carrying out your instructions.




We are committed to ensuring that our customers are treated fairly.  A crucial part of this ethos is to ensure customers are able to make a complaint.

In the unlikely event that you should have cause for complaint, please write to:

The Managing Director
Direct Commercial Limited
Redwing House
Colchester Road
Essex CM2 5PB


Email:  liam.guilfoyle@directcommercial.co.uk


We will acknowledge receipt of your complaint in writing promptly and provide you with a timescale for a full response.  We will endeavour to provide you with a final response within 8 weeks.  If you remain dissatisfied with our response to your complaint you may be able to refer the matter to the Financial Ombudsman Service.  To use their service you must be eligible and your complaint must be sent to them within 6 months of our final response letter.  You may contact them at:

Financial Ombudsman Service

Exchange Tower


E14 9SR

Tel: 0800 023 4567

Email: complaint.info@financial-ombudsman.org.uk

Website: www.financial-ombudsman.org.uk



We are covered by the Financial Services Compensation Scheme (FSCS).  You may be entitled to compensation under the scheme if we cannot meet our obligations.  This depends on the type of business and the circumstances of the claim.

Insurance advising and arranging is covered for 90% of the claim with no upper limit for non-compulsory classes of insurance and 100% of the claim for compulsory classes of insurance.  Further information about the compensation scheme is available from the FSCS or by visiting the Financial Services Compensation Scheme website at www.fscs.org.uk.


General conditions



Quotations offered by Direct Commercial Line Limited are valid for 14 days from date of issue.    Your insurer has the right to decline your risk, increase the premium or restrict the policy if any errors or omissions are found in the information you provide.


Risk Transfer and Client Money Segregation

As an Appointed Representative of Direct Commercial Limited, premiums that you pay for insurances arranged by Direct Commercial Line Limited are paid to Direct Commercial Limited.  These are held in an insurance broking trust bank account specifically for the purpose of holding premiums, and will be held as trustee for the insurer.  If we become insolvent, the terms of the trust dictate that insurers will subordinate any claims to claims from our clients.


By virtue of agreements held with insurers we collect premiums as agents of the insurer.  Therefore, once we have collected the premium from you, under the terms of our agreements with insurers, those premiums are deemed as having been paid to the insurer.  We will remit premiums to insurers in accordance with the agreements we hold with the insurers.


Earning Interest on Customer Premiums

We hold premiums that you pay us in a client money bank account.  Under Financial Conduct Authority Regulations we have to inform you that we may earn interest from money held in our client money bank account, which may exceed £20 for any one transaction that you make with us.  Interest earned will not be held for the benefit of customers.  By instructing us to place insurance on your behalf you give your informed consent to this.


Other Taxes or Costs

Please note that there is a possibility that other taxes and/or costs may exist in respect of products and services offered by us, which are not paid through or imposed by us.


Our Remuneration

Direct Commercial Line Limited is remunerated by receiving a percentage of premium by way of commission or brokerage.  As your policy has been purchased for your trade or profession you are entitled, at any time, to request information regarding any commission which we may have received as a result of placing your insurance business.
Governing Law

This Agreement shall be governed by the laws of England and Wales and the parties agree herewith that any dispute arising out of it shall be subject to the exclusive jurisdiction of the English Courts.



No variations to these terms are held to be valid unless in writing and signed by an authorised officer of Direct Commercial Line Limited or Direct Commercial Limited.  The Company’s staff are not authorised to agree any variation of these Terms but they may be varied by the Company from time to time.


Statutory Rights

Agreement to our Terms of Business does not affect your statutory rights.

Version 1.0 (January 2017)

We wont waste your time; if we don’t think we can help we will be straight forward and tell you but in most cases if you really are prepared to work with us we will be hard to beat.