12 TOP TIPS – How to Avoid Costly Insurance Blunders and Save Money in the Process
Ignore them at Your Peril !
We all know insurance is unexciting (!) but because it involves money, your money, it’s important you do not make costly insurance errors.
Below is a list of Top Tips that you should heed including some of the classic insurance mistakes which cause problems time and time again. And rest assured, you’ll probably Save Money too.
This is not an exhaustive list but if you adhere to them you’ll avoid financial pitfalls and possibly ruinous consequences.
Insurance Companies and Claims Adjusters are experienced negotiators (they know every trick in the book) so if you get things right at the outset there’s less chance of getting your claim reduced or even rejected. We’re here to make sure of that !
So, here we go:
- Don’t underinsure to reduce your premium or to save a few ££’s as it is a false economy. If you skimp now you could pay later. This is the classic trap that may lead to claims are not paid in full or substantially reduced.
- Never hide or misrepresent information when applying for insurance. Answer the questions fully and correctly. An important fact like not disclosing a previous claim could possibly invalidate your insurance.
- Do give the right description of your business. For example, do not say you are a General Builder when you are a Roofer or running a Bar when your business is a Nightclub.
- Be aware of your policy excess(es) as some insurers give you a high excess in order to offer you a lower premium. This means you will have to bear a higher amount of your claim. There could also be multiple excesses such as one for theft and another one for flood or water damage. Don’t get caught unawares.
- I know this is boring but do take the time to read and understand your quotation or policy firstly, to make sure you have the right cover and secondly to be aware of your responsibilities eg., having a certain type of alarm or making sure the right locks are in force.
- It would be unwise to focus solely on reducing the price of your insurance at the expense of cover or protection. You may regret chasing the cheapest premium when you come to claim. Find the right balance between the level of cover you require and price.
- Always keep a record of your financial transactions (or purchases) as they are invaluable when the time comes to claim. You’d be surprised how many Business Owners do not have this information when it is needed.
- Be careful with ‘Click & Buy’ insurance as some of these budget policies are thin on cover. If some deals are too good to be true question them! There’s usually a reason. Check thoroughly that they give you the protection you want.
- Always re evaluate your cover at renewal time firstly to make sure you are still adequately protected and secondly, if your circumstances have changed from last year eg., turnover, staff wages
- Report any incident promptly as this could lead to a potential claim – we all know how a simple trip at work can lead to a claim against you for thousands of ££’s. All insurers have a time limit within which you are obliged to notify them of an incident (or potential claim).
- Give as much information about your business so you can benefit from all the discounts you deserve. We love to give our customers discounts !
- Finally, don’t guess but assess! If you have any doubts about anything Phone Us and find out….
As I mentioned previously, this is not an exhaustive list but just some key areas where Business Owners fall down on.
If you have any questions or queries on these, or any other insurance matter, do give us a call on 0207 731 3700 or Email Us
We want you to be safe and sound.