An Overview of Insurance25/10/2017
Insurance can be a confusing topic, and often your broker may seem to be trying to confuse you by using technical jargon which leaves even more confused.
There are a few simple questions you can ask either yourself or your broker to ensure you are holding adequate cover and assist you in understanding the product you are buying:
Are you covered for Manual Work Away?
Manual work away will include tasks such as installation and fitting work. It is important that this cover is in place for any damage or injury that might be caused.
Does your policy have a Heat Exclusion / Condition?
Sometimes called Burning and Welding Conditions, this covers you for using heat equipment such as blow torches. If your policy has a Heat Condition, you are invariably covered. However, cover would not be in place if our policy has a Heat Exclusion.
Do you have cover for laptops away from the premises on an “All Risks” basis?
This cover is essential if you take equipment such as dongles and laptops to a client’s home for the purpose of doing the design work etc. Ensure that the sum insured reflects the total cost of replacing all of your items should they all be damaged or stolen.
Am I covered for the actions of subcontractors?
If Installation works are partially or fully carried out through subcontractors, your policy will likely have stringent checking conditions with which you must comply or risk your claim not being paid
Are your sums insured adequate for your requirements?
Under insurance can be a major issue and will result in your insurer paying less for a claim, even if you only suffer a partial loss.
Do you hold Legal Expenses insurance?
This will cover you for incidents such as Contract Disputes and Debt Recovery, and will be especially applicable as the economy moves into evermore unpredictable times.
Are cover for your Goods in Transit?
During the transportation from yourself to the customer to the site, you are typically still liable for goods up until completion. Ensure that cover is in place for the supply up to this point.
When your policy comes up for renewal, you should ask yourself if this is being handled correctly and if you’re getting the best available deal.
- If you have been with the same insurer through the same broker for over 5 years, there is no guarantee that your current broker is shopping around for you each year. It can be worth letting another broker take a look periodically to ensure your current broker are kept on their toes.
- Determine how well your current broker understands your industry by checking if they protecting you in the areas mentioned above.
- Ask yourself if you are receiving the level of service you would expect and if claims are being met to your satisfaction.
- Ensure that you assess your covers and sums insured each year so that levels are increasing and decreasing according to your requirements. The phrases “everything is the same” or ‘nothing has changed’ are largely overused.
- When your renewal date approaches, you should be speaking with your broker at least 3-4 weeks prior, avoiding a last minute rush to renew the day before expiry. Time gives you the upper hand and a chance to consider and reflect on the options available to you.
- Ask your broker to see other options and alternatives from the market so that you know what else is available.
It is more important than ever to keep fixed overheads such as insurance costs down to the minimum, as the economy becomes increasingly unpredictable. However, insurance is currently less of a fixed cost than it has been for a long time as we are in the grip of a soft market. What this means for you is lower rates and more opportunities for savings.
It is important to be taking out the right cover and at the right price, so speak to a specialist who understands your industry.
Call Andy at UK Special Risks on 01634 862525 to discuss your business, cover requirements and to obtain your quotation or recommendations.