Long term agreements (LTAs) are arrangements that allow an insurance broker to act for you for a period longer than 12 months.

There is nothing improper about them, provided people know what they are signing up to. A client approached us recently unaware that he was tied into an LTA and having experienced poor service, wanted to change broker, but was hampered from doing so. Against this background, it is difficult to imagine the LTA being enforced, but that was the initial reaction. Further difficulty arose because renewal was imminent.

In this case an extension of cover was negotiated whilst the issues around the LTA were resolved, including waiving a £65 fee.

If there is not clear evidence that the LTA has been properly explained, will know the insurance ombudsman will take a dim view of this practice and they will be unenforceable.  So, the advice is to look out for these agreements and be aware what you are committing to. However, for us a good broker is one that lives on the services that it delivers day by day and does not ask for a long-term agreement.