Cover pricing meaning

This Checklist outlines the principal considerations when preparing a schedule to a business‑to‑business agreement. For further guidance on drafting commercial contracts, in general, see: Practice Note: Key terms and conditions in commercial contracts Practice Note: Structure and form of commercial contracts Commercial contract drafting and review-checklist Commercial contract review and execution (business personnel)-checklist What are schedules used for? Schedules to an agreement typically hold detailed information about particular aspects of the deal or deviations from a standard contract, and they commonly address commercial matters. These may cover pricing and charges, key personnel, service levels and service credits, technical specifications and statements of work (e.g. details of licensed software, scope of services to be performed, descriptions of products to be provided), territories covered, sales targets, governance, business continuity and disaster recovery, and policies. In more intricate agreements, the appropriate commercial teams within the business often assume responsibility for schedules addressing commercial issues (with input from lawyers where required), as they...

Call or put option? In a call option, the purchaser holds the reins, as it may demand transfer of the asset. The seller should recognise that its intentions for the site could be curtailed by that right, and plans for the property restricted. A put option, by contrast, places control with the seller, enabling it to require the purchaser to take the property and complete the acquisition, obliging the buyer to buy. Option period For a call option, the vendor should be mindful that the land could be effectively frozen throughout the option window, potentially sterilising its use. Accordingly, the deal ought to state a clear long‑stop date to cap the period. The Perpetuities and Accumulations Act 2009 (PAA 2009) removed the rule against perpetuities for options, so those granted on or after 6 April 2010 do not need a specified long‑stop date in this context. Before PAA 2009, a call option lapsed if not exercised within 21 years. Where exercise depends on the buyer securing...

This checklist helps practitioners grasp and consistently apply the FCA’s Consumer Duty requirements for evidencing fair value effectively. It should be considered alongside other relevant practical Consumer Duty materials and references: for information on the main elements of the Consumer Duty with general application, see Practice Note: The FCA Consumer Duty—essentials; also for a suite of sectoral guidance and checklists see: Consumer protection and FCA Consumer Duty—overview for key developments relating to the FCA’s Consumer Duty, see: The FCA Consumer Duty—timeline Background Under the Consumer Duty, four outcomes cover the central and key aspects of the firm–customer relationship. The second outcome is the Price and Value Outcome, which is concerned with an overarching obligation that products must deliver ‘fair value’ to customers. Under PRIN 2A.4: value is the relationship between the amount paid by a retail customer for the product and the benefits they can reasonably expect to receive from the product; and a product provides fair value...

In this issue: Advertising, marketing and sponsorship Consumer protection Contracts Data protection International Supply chain LexTalk®Commercial: a Lexis®Nexis community Daily and weekly news alerts New and updated content Dates for your diary Trackers Latest Q&As Advertising, marketing and sponsorship ASA Ruling—25 June 2025 Three objections were lodged with the Advertising Standards Authority (ASA) about statements on the website of Bodystreet Franchise (UK) Ltd, a fitness studio promoting Electro Muscle Stimulation (EMS) training. The ASA upheld all three challenges. See: LNB News 25/06/2025 44. CMA proposes strategic market status designation for Google's search services The Competition and Markets Authority (CMA) has opened a consultation on designating Google with strategic market status for general search and search advertising under the Digital Markets, Competition and Consumers Act 2024. Proposed interventions include compulsory choice screens for search providers, fair ranking obligations, enhanced publisher controls, and data portability measures. The scope would cover Google’s...

What is a captive insurance company? A captive insurer is a fully owned subsidiary set up to manage and mitigate the risks of its parent and related entities. When the parent cannot secure appropriate cover from the traditional market for certain risks Premiums paid into the captive can generate savings for the parent or related parties Ability to place cover with reinsurers that the parent cannot access directly Addresses specific risks not available in the wider insurance market Funds the deductibles on policies purchased by the parent Investment income available to offset losses Improved control over claims Cover tailored to your needs Reduced reliance on commercial insurance Stabilisation of pricing Key takeaways A captive insurer is a wholly owned subsidiary that mitigates risk for its parent and related entities Benefits can include lower insurance costs, potential tax advantages, underwriting earnings, and tighter control over its cover Captive insurance companies...

However, the Association of British Insurers (ABI) noted that prices remain 21% above the second quarter of 2023, when the average was £511, despite premiums dropping in the equivalent spell in 2024. After what has been a testing time for both insurers and policyholders, we are heartened to witness a slowing in the pace of motor cover increases as recent claims expenses begin to stabilise, said Mervyn Skeet, the trade body’s director of general insurance policy. While that is overall positive, our efforts must continue to concentrate on claims costs, in the interests of consumers...

This Practice Note explores hard and soft insurance markets and the way trading conditions influence underwriting, premiums and claims in practice over time. It also sets out practical pointers for insurance renewals. The insurance sector is often described as hard or soft, mirroring the broader economy, operating conditions and competition within the market. In a hard phase, fewer insurers are prepared to provide cover and those that do may narrow their terms and seek higher premiums. Life insurance is generally less exposed to unfavourable market shifts than non-life business, which is written for shorter periods of insurance. The market must remain adaptable and ensure its risk appetite and pricing align with changing circumstances as they evolve. An insurer’s diversified portfolio usually enables it to balance losses from one book of business against another, but it should be borne in mind that an insurer will not necessarily hold its claims reserves in a discrete bank account. Premium income will be invested and the resulting investment returns used to help meet operating...

Although every litigation funding agreement (LFA) and its related papers differ by the funder and the nuances of the claim being financed, certain core matters must be dealt with through distinct stages of negotiation. This Practice Note forms part of a concise series from Tanya Lansky and Tets Ishikawa, Managing Directors at LionFish Group Ltd, designed to equip participants negotiating or evaluating LFAs and their ancillary documents with a clearer grasp of key dynamics. It highlights the considerations at play for practitioners across negotiation phases. Emphasis rests on identifying issues common to most LFAs despite case-specific features and differing funder approaches. Adverse costs risks for funders Solicitors invariably warn clients about potential exposure to adverse costs should litigation ultimately fail. The emergence of the after-the-event insurance (ATE) market offered claimants a means to hedge these hazards where an insurer considered the prospects sufficiently robust to extend cover. While ATE insurance can shield against an adverse costs order, protection is confined to the agreed limit of indemnity (LOI)...

What is design and build? At its simplest, design and build (D&B): is a project procurement method under which a single organisation (the D&B contractor) assumes responsibility for both the design and construction phases of a project can provide the employer with a single, direct point of contact and clear accountability, reducing the employer’s overall risk. Although D&B carries more risk for the D&B contractor, this is addressed through the pricing. What is D&B insurance and why is it needed?...