Another option is for your business to be the insured party. Here the insurance policy that is offered to customers is one in which they themselves cannot make claims on the insurer. Instead, customers can only request that the business makes claims on their behalf. In these circumstances a business is not ‘arranging’ an insurance transaction.
For such an arrangement to work the business would need to have an ‘insurable interest’ in order to become a policyholder in the first place. An example would be the type of fee protection insurance that accountants could offer against fees that might be encountered during a tax investigation. Here it would be the accountants that would make any claim on a client’s behalf for the fees involved. Such a policy might also be an option for businesses such as freight forwarders for goods in transit.
Businesses do need to be careful if using this option as there are other factors to consider. We would be pleased to discuss these with you and would strongly recommend that you consider seeking professional legal advice if you are considering relying on this type of scheme.