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My pet hate has always been the term All Risks because it’s utter … jargon.
It gives the impression that everything is covered when there are still terms, conditions, warranties and exclusions that can trip up the most seasoned business owner. Insurance claims can lead to insurance problems and, eventually, insurance complaints. The FSA has set up a framework for complaints but it’s still a long winded process.
It costs thousands to sue a broker or insurance company if they make an error or use bad judgement. All of the above should be avoided because cash flow is king and small incidents can lead to a dip in income that could affect budgets set aside for marketing, staff, maintenance or other purposes…
Insurance problems are usually due to a lack of clarity. Either the broker has failed to collect all the information an underwriter requires or the insurance company or broker doesn’t communicate the policy conditions to the client effectively. Even though there is a clear duty to do so before any policy is recommended.
The person that suffers most is the insurance buyer so I recommend that businesses ensure they choose an adviser that seeks to understand the business before the budget. Perhaps give them examples of the type of claims that concern you rather than being blinded by the policy features and confused by jargon
I believe the insurer provides the cover and the adviser interprets how it works when a business needs it, the reassurance that I talk about so often. A business with stock cannot afford not to be covered just because they didn’t store it at the correct height. A business reliant on premises does not always want to fund alternative accommodation itself.
If you have all risks cover within a policy you still need to check the conditions of cover. The best way to do that is to ask the adviser what they are, and then plan how to work with them to manage the risks that are uninsured.
Don’t accept jargon — it’s imperative you understand the workings of a policy, an adviser cannot possibly envisage all the risks to your business but together you can produce a package of protection that meets your needs. By understanding what isn’t covered businesses can make a judgement on the uninsured losses they are prepared to fund. And find policies that suit them.
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