Q&A

Question: "We have a large amount of mixed use business on the books (minibuses used for hire and reward and pleasure use). The FSA says these are retail customers unless they can be defined as a company. How does the FSA define a company?

Answer: "It is the status of the buying entity and whether it is a natural person that is important. A sole trader (or partnership) in your example would be a retail customer. A limited company buying insurance is not a natural person and therefore not a retail customer. Sometimes individuals within a commercial group policy (such as a private medical or fleet policy) may have the right of claim and, while this is treated as a commercial contract, individual product summaries may still be needed."