FAQs
If my current broker is now matching your quote, what does that mean for me?
If your current broker can suddenly match our quotation, it’s worth asking yourself if they were offering you the best value to begin with.
We understand that loyalty and long-standing relationships matter when choosing a broker. But as a contractor, do you get multiple chances to win a job once you’ve submitted your tender?
At AGA Corporate, we believe in giving our clients the best offer upfront – transparent, competitive, and without games.
Who will manage my account once I arrange my policy with AGA Corporate?
At AGA Corporate, your broker remains your broker. Unlike many firms that pass you around, we believe the best service comes from someone who truly understands your business and your insurance needs.
While we prefer a single, dedicated point of contact, the entire AGA Corporate team works together behind the scenes to ensure your needs are handled quickly and efficiently. And if you ever need to make a claim, our in-house claims experts will manage the process from start to finish – so you’re supported every step of the way.
With AGA Corporate, your insurance is in safe hands.
I’ve been told there’s a declaration to pay if I move my policy – what does that actually mean? (Minimum & Deposit (M&D) policies and end-of-term declarations)
Most liability policies are written on what’s called a Minimum and Deposit (M&D) adjustable basis. This means the premium you pay at the start is considered a non-refundable deposit – the minimum amount the insurer will retain, no matter how your business activity changes during the policy period.
These types of policies require you to provide estimated wages and turnover when the policy starts, and then confirm the actual figures at the end of the year. If your actual figures are higher than what was estimated, your insurer may charge an additional premium, known as an end-of-term declaration.
While genuine declaration charges can’t be removed, some insurers may offer to waive or reduce this amount if you renew the policy with them. However, this isn’t always the most cost-effective option.
For example:
Let’s say your renewal quote is £9,000, but there’s an £1,500 declaration owed for the expiring year. The insurer offers to waive the £1,500 if you renew. That brings your total payable to £9,000.
But if you receive a competing quote at £7,000, it might seem like you’re saving, but remember: the £1,500 you didn’t pay last year could affect how your next renewal is calculated. The renewal premium next year may be based on that higher figure, potentially costing you more in the long run.Bottom line:
Your renewal terms and any end-of-term declarations should be considered separately. If you’re unsure how this affects your policy or which option is best, speak with a member of our team – we're here to help you make the most informed decision.What’s the difference between A-rated, B-rated, and unrated insurers – and why does it matter?
Insurance companies are given financial strength ratings by independent agencies like AM Best, Standard & Poor’s, and Moody’s. These ratings reflect the insurer’s ability to pay claims – in other words, how financially stable and reliable they are.
A-rated insurers
What it means: Strong financial stability and a low risk of default
Why it matters: More likely to pay claims on time, even in large or complex cases
Typical use: Preferred for high-value or high-risk policies (e.g. construction, commercial, international projects)
Example ratings: A, A+, A- (depending on the agency)
These are generally seen as the safest and most reliable option.
B-rated insurers
What it means: Moderate financial strength, but a higher risk than A-rated carriers
Why it matters: May still be reliable, but are more exposed to market conditions or financial pressure
When used: Sometimes chosen for niche risks or when A-rated options are unavailable or too expensive
There is potentially a higher risk in long-tail claims or during economic instability.
Unrated insurers
What it means: These insurers haven’t been rated by the major agencies
Why it matters: It doesn’t automatically mean they’re bad – but there’s no independent benchmark of their financial strength
When used: Often for very niche or hard-to-place risks, or in certain emerging markets
Higher uncertainty – and in some cases, claims may be harder to recover if the insurer faces financial trouble.
Why it matters to you:
Choosing an insurer with a strong rating helps ensure:
Your claims will be paid – this is especially critical for long-term or large-scale risks.
Your policy is backed by a financially stable provider.
You meet the requirements of lenders, regulators or contract partners (some won’t accept unrated insurers).
How do I sign my policies over to AGA Corporate?
We will provide a new Letter of Appointment (LOA) for you to sign, officially authorising them to represent you. This document needs to be signed, dated and your letterhead needs to be on the document.
Review the new LOA carefully, confirming the details, and ensure it covers all the policies you wish to transfer over including insurers and policy numbers.
Once signed, this authorises us to manage your policies and work on your behalf going forward.
If you can provide all expiry information, this helps to speed up the process; however, it is not necessary.
Glossary of Insurance Abbreviations
CCQ: Contract Certain Quote
This is the formal quotation contract for an insurance policy. Once signed, it represents an agreement between the client and insurer, confirming the terms, coverage and premium.
VOI: Verification of Insurance
A certificate issued once the client has held cover. It verifies that the client’s insurance policy is in place and provides proof of coverage, which can be used immediately.
Investec, Close Brothers (CB), PCL:
These are finance providers we work with to offer various financing options for paying insurance premiums. They provide different interest rates and products through which we can secure premium credit for clients.
MTA: Mid-Term Adjustment
A change made to an insurance policy after it’s been issued but before the policy expires. This adjustment can affect coverage, limits or premium.
EL: Employers’ Liability
Mandatory insurance required in the UK to protect employers against claims from employees who are injured or become ill as a result of their work.
PL: Public Liability
Insurance that covers claims made by third parties for injury or property damage caused by the business’s activities.
PI: Professional Indemnity
Insurance covering professionals (like consultants, architects, etc.) for claims arising from negligence, errors or omissions in their work or advice.
CAR: Contractors All Risks
Insurance designed to cover contractors for damage or loss to construction works, plant, machinery and third-party claims while a project is in progress.
PO: Property Owners
Insurance policies that protect property owners against risks such as damage to buildings, loss of rental income or liability claims.
BSI: Building Sums Insured
The value insured for the rebuild cost of a property, typically ensuring the full replacement value of the building in the event of damage or destruction.
LOA: Letter of Authority/Appointment
A document authorizing a broker to act on behalf of a client, enabling them to place or manage insurance policies.
Hold Cover
This refers to the formal go-ahead given by the client for the insurer’s annual proposal. It confirms the client’s acceptance of the proposed insurance terms, setting the policy in motion.
CR: Credit Report
A report detailing the credit history and financial standing of a business or individual, often used by insurers to assess risk when determining premiums.
AP: Additional Premium
An extra charge to the original premium for policy changes or added coverage during the policy term, typically triggered by an adjustment in risk.
RP: Return Premium
A refund issued to a client if the policy is modified mid-term, typically due to reduced risk, lower coverage or cancellation of a portion of the policy.
URN: Unique Reference Number
A unique identifier assigned to each policy, claim or transaction, making it easier to track and manage in systems.
TOR: Time on Risk
Refers to the period during which an insurance policy is active and provides coverage, typically used to calculate premiums or prorated charges.
Ab Initio: From the Start
A Latin term used to indicate that something is valid from the beginning of the policy period, as if it had always been in force.
DD: Direct Debit
A payment method where the client’s account is automatically debited for insurance premiums, often monthly or quarterly.
Total Loss
When the damage to an insured asset (such as a vehicle or building) is so severe that it cannot be repaired, and the insurer pays out the full sum insured or replacement cost.
Prudent Uninsured
Refers to situations where a client’s claim could be repudiated (rejected) due to insufficient coverage or failure to insure adequately. In these cases, clients should act as if they are uninsured, as they are fully liable for any losses.
TSI: Total Sums Insured
The total value of all insured assets under a policy, which typically includes the sum insured for buildings, contents, equipment and stock.
WEF: With Effect From
A term used to specify the date when an insurance policy or change to the policy becomes effective, marking the start of coverage or a new term.