Is there anything that I can do to prevent my premium from increasing?
There are many actions with little or no cost that can be done.
Tip 71 – VAT Recoveries – Insurers legal right to use you!
Hopefully most readers will recognise that in writing these pieces our objective is to provide genuine assistance to retailers in playing any part in reducing the impact of increased insurance premium costs through practical advice.
This piece is no different. We have on many occasions made reference to the high costs paid to claimants yet perhaps not enough reference to the associated costs, (legal, professional etc), which themselves are considerable. Once again I am compelled to highlight your part in achieving any potential savings involving little effort and no cost.
Insurers are not VAT registered and so any expenditure including this tax is not recoverable. There is however a provision under Section 54 of the Finance Act 1989 which states:-
“Where a person is indemnified under a policy of insurance in respect of an amount payable in respect of a barrister or solicitor, those services shall be deemed, for the purposes of this Act, to be supplied to, and received by, the said person.”
In short folks this means that your insurer can present you with a VAT Invoice and get you to add it to your VAT returns for recovery which of course you then pass to them to reduce the final cost shown of a claim shown against your record. Remember that these services have been provided on behalf of your defence costs. Remember also that whilst this may appear insignificant in the overall scheme of costs you must nevertheless play your part in keeping claims costs as low as possible and this is genuinely one way which will cost you absolutely nothing! Every potential saving is worthy of some effort. Please play your part!
Always remember – call us to discuss any/every incident. We will advise and guide you.