It’s fine – no need to change anything..
This is a response that I often hear from both prospective and long-standing clients – they frequently consider that what protection they have in place is “fine”. This is frequently not the case as the following examples will illustrate:-
Case Study - Homeworkers
A professional couple had operated a successful business from their comfortable home for a number of years. Upon contacting them to discuss in greater detail, it transpired that their “Homeworkers” policy was barely worth more than the paper on which it was printed! Although their premium was quote substantial, there were alarming gaps in their cover :-
· They did not in fact have cover for Employer’s Liability, meaning they were in breach of the Employer’s Liability (Compulsory Insurance) Act.
· Although they had extensive business equipment including tablets, laptops and mobile phones, none of these were specified and not covered at all away from their home.
· The “Homeworker” policy wording excluded any business activity which generated an income in excess of £25,000 per annum – this business was generating 10 times this amount.
· The client’s home was a 200 year old stone building, whereas the insurer statement showed it was built after 1980. This in itself would have a dramatic effect on the acceptance and the premium rating with any insurer.
By taking a little time to get to understand the client and their business, I was able to offer an insurance programme which included a separate policy for their home and business – ensuring that all the gaps highlighted were closed, giving them complete peace of mind. The overall result was a delighted client.
Caste Study – Property Owner
A local charitable trust owned a substantial property for which they are responsible for the management and letting to a small number of tenants. I visited them and took the time to understand how they operated and what was important to them.
Upon studying their existing insurance schedule it was clear that there was a very obvious element of cover missing. As a landlord, their primary source of income was the rent received from each of their tenants. In the event that the building sustained an insured event (fire or flood e.g) which rendered the building uninhabitable, they would potentially lose income until any repairs were completed. Given that the building was Grade 2 Listed, this could involve months of negotiations with English Heritage and the local planning authority – during which time their tenants may have relocated and perhaps not even return. The potential loss of income would have proved catastrophic to my client, so I recommended that they insure against the risk of this for a period of up to 3 years. The cost to them was a few hundred pounds, which they were happy to pay to avoid the consequences.
Next time you have a few minutes; take a look at what cover you have for your business, your property or your vehicles. Better still – talk to an expert in the field who can give you advice on the best way to protect what matters to you.
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