Our top tips for signing a contract
Here are our top tips to keep you protected when entering into a contract:
Read. Read Again. Ask. Understand and then Agree.
Always read the entire contract and make sure you understand the meaning of the words. Don’t be afraid to ask questions on the aspects you don’t understand (even if it seems silly). Only sign a contract if you completely agree with everything it says. If a contract mentions another document, always read that document. Don’t just assume you know what it says.
Don’t be afraid to negotiate or insist on changes.
Ask for what you want! Especially if you feel that it is necessary and beneficial to you. A good contract will clearly explain the rights and duties of everyone involved – that is the heart of any contract. It must say exactly who will do what, and when they need to do it. For example, a contract may say that one person will provide goods or services in return for payment. A good contract will clearly indicate what goods or services will be provided when it will be provided, how and when payment must be made.
If you can’t get out, don’t get in!
People and businesses enter into contracts because they trust the other party and believe they’re able to do the job. It is only later on that they realize their trust was misplaced. A good contract will allow you to cancel for cause or convenience and explain exactly how you should go about the cancellation. If a contract does not say how to get out when things go wrong, then the clever thing to do is to not sign it in the first place.
What legal documents affect the insurance industry?
You have decided to get an insurance quote comparison - great! There are some documents that will need to be signed, what are they and how do they affect you?
An RFI - request for information gives the broker permission ONLY to request your policy schedule and claims history. Financial Advisory and Intermediary Services
(FAIS) legislation states that, once an insurer or the current broker receives an RFI they have 48 hours to provide the enquiring broker with the schedule. Signing this document will have no effect on your current policy or the agreement you have with your current broker.
The second document that is of utmost importance is the broker's appointment document. This document comes into play when you decide to move from one insurer to another OR from one brokerage to another and it has a number of implications attached to it. It states that once signed by the client the new broker takes over the policy, with immediate effect. It also authorizes the new broker to make new changes to the policy and to ensure that the policy reflects the best interests of the client.
Your broker has a moral and ethical obligation to inform and educate you about what you are signing and what the implications are. Always ensure that you read the fine print before you sign any document and when working with insurance brokerages ask yourself are they chasing your policy or are they looking after you?
Here at Mont Blanc our CEO leads us with the motto “clients don't care what you know until they know that you care.” That is why we always go above and beyond for our clients.
To get a quote comparison or take out a new policy give our caring brokers a call today on 0800 INSURE (467873)