A Mid Term Adjustment or MTA is any change made to your insurance policy during your policy term, rather than at the start or at your renewal. If you don’t let your insurer know of a change in your circumstances, it could invalidate your insurance. Trafalgar Risk Management allows our policy holders to make Mid Term Adjustments through their MyTrafalgar portal during their policy lifetime.
Here are 5 reason why you might need to make a Mid Term Adjustment;
1. Change in business activity
If your business starts to offer new services or discontinues old ones, this can change the level of risk that your business is exposed to.
Here are some examples:
- You have undertaken additional training since you took out your policy, which enables you to provide more services to your clients.
‘Over the past few years, we found that members of the Association of Accounting Technicians (AAT) would undertake an additional course in ‘Loss Adjustment Expense’, which would enable them to provide additional paid services to their clients. The increase in business also led to members requiring an increase in their turnover limit.’
- You have changed from a sole trader to a limited company.
- You have a new contract, stipulating a required level of liability.
2. Change in turnover or fee income
Insurers will use turnover as a key rating factor; a significant increase or decrease can affect the premium.
So, if you have taken on an additional big contract you might need to check your cover limit to ensure that you are still covered for the additional work.
3. Adding or removing directors, partners or key staff
A change in personnel within the business doesn’t just have to be a changeover of senior staff, it could even be the exciting step of taking on your first employee. Either way, it’s important to let the insurer know.
4. An increase in responsibilities
Members of BADN can increase their cover should there be an increase in the level of duties that the need to undertake as part of their role. We even provide maternity cover, which can be increased once the dental nurse returns from maternity leave.
5. Regulatory or licensing status changes
If the business becomes newly regulated or loses its licence to operate, it must be reported to the insurer.
If you are running an accountancy firm that becomes FCA authorised and starts to give financial advice.
How do i make a Mid Term Adjustment?
If you already hold a policy with Trafalgar Risk Management and need to make a Mid Term Adjustment, login to ‘MyTrafalgar’.
Founded in 1995, Trafalgar Risk Management has a long history of working with membership associations in the UK. In addition to their business cover accountancy and bookkeeping professionals, they are also able to provide cover for a wide range of professions (including but not limited to); Accountants and Bookkeepers, Interior Designers, Dental Nurses and Health and Safety professionals. To find out more, click here.
