Commercial Contractors Combined Insurance for SMEs - Target Market Statement

What is this product?

Commercial Contractors Combined is a commercial lines SME product designed to combine a business’ main insurance needs with flexible optional covers of material damage, employers’, public and product liability and/or contractors all risks. Further optional covers are available.

What customer need is met by this product?

This product is designed to protect against financial losses arising from specific insurable events.

Who is the product designed for?

  • Customers whose cover needs are more complex than our package products, so their business and insurance needs mean that our package products aren’t suitable, and more tailored cover is required
  • Customers with business domiciled in the United Kingdom of Great Britain and Northern Ireland, the Channel Islands, and the Isle of Man

Who is the product not designed to support, or are there any features you should be aware of when offering this product to your customers?

This product is not suitable for:

  • Consumers
  • Customers who want to insure more than 10 buildings at new business, or 15 at renewal, and/or wish to insure predominantly residential properties
  • Customers who have a turnover of more than £5,000,000
  • Customers who are not sole traders, companies, or partnerships based in the United Kingdom of Great Britain and Northern Ireland, Channel Islands, or the Isle of Man
  • Customers who have unspent criminal conviction(s) or an adverse financial history
  • Customers who have an existing policy in place providing the same cover and whereby purchasing this product would give dual cover
  • Customers subject to any economic, financial or trade sanctions imposed by the European Union, United Kingdom, or any other prohibition or restriction imposed by law or regulation of the country of which this policy is issued or would otherwise provide cover

Can this product be sold with or without advice?

  • This product can only be sold with advice, in line with FCA regulations
  • This product is supported by a policy summary

How can this product be sold?

This product can be distributed by brokers who trade with us via Zurich Online, or Acturis Open Market.

Are there any eligibility criteria, conditions or exclusions that may impact the outcomes that customers may reasonably expect?

  • The distributor must always consider whether they have the correct product to meet the customer’s needs
  • Policies for this product are individually underwritten so indemnity limits, exclusions and excesses that apply will depend upon the risk insured and will be stated in the policy quote and policy schedule
  • Eligibility and risk acceptance criteria will restrict access for certain risks which may be suitable for this product but are outside of Zurich’s current strategy and/or risk appetite

How is the value of the product assessed?

  • We assess product value using quantitative and qualitative information, including data from our distributors relating to service and remuneration, as appropriate
  • This product has been approved in line with Zurich’s product governance processes, including consideration of the value of the product. This includes:
    • Cover – whether the level of benefits and relevant exclusions offers value to the customer
    • Utility – whether the product is being used by the customers of the intended target market
    • Zurich service – whether the type and quality of services being provided is reasonable and fair to the customer
  • The outcome of the Fair Value Assessment confirms that this product is considered to provide fair value to customers for a foreseeable period of time. The Fair Value Assessment is valid until 31/08/2026

What are the obligations of our distributors?

  • Manufacturer notification – all intermediaries must review their product distribution at least every 12 months and consider the impact of remuneration against the intended value of their products. Distributors must notify the manufacturer as soon as practicable if there are any value concerns for which remedial action is required
  • Remuneration – distributors must ensure that any remuneration received for an insurance product does not result in the product ceasing to provide fair value to the customer
  • Provision of information - if so requested, distributors must provide the manufacturers with: (i) information on the distributor’s remuneration in connection with distribution of the insurance product; (ii) information on ancillary products or services that may impact the intended value of the manufacturer's primary insurance product; and (iii) confirmation that the distribution arrangements are consistent with the obligations of the firm under the FCA Handbook including SYSC 10 (conflicts of interest) and SYSC 19F.2 (IDD remuneration)
  • Price optimisation - if the distributor is a price-setting intermediary, unless there is a reasonable basis, firms should not increase the price of the insurance product based on: (i) policies being subject to auto renewal compared to policies that are not subject to auto renewal; (ii) the customer’s vulnerability or any protected characteristics (unless the firm can rely on them under the Equality Act 2010); and (iii) where customers purchase the policy using retail premium finance