We all know times are tough in this economic climate. There isn’t a business sector that hasn’t been touched including insurance.
Insurance you ask…?
Why insurance? “All insurance companies do is to take your premium and never pay up” is the classic line told by many.
Partly true ?
But now even more so….
Because they are also suffering from fraud, low investment returns and mismanagement, among other things, they are also looking to reduce their costs.
What they do now is that when a claim comes in from one of their Business Insurance policyholders, they now go through the information that was given to them at the inception of the insurance policy.
So, here are just two of the questions insurers usually ask:
- Have you had any previous claims, or incidences, in the last 5 years whether insured or not?
- Have you held any previous directorships of companies which have gone into liquidation/administration/bankruptcy?
On the first, and depending on the severity of the claim, if you omitted to tell the truth, the whole truth and nothing but the truth you could be in trouble. Everyone knows you have to answer this question fully. One of the main reasons why claims don’t get paid is due to non disclosure of the information requested by the insurance company.
The second one, on the surface, is more innocent but if not answered correctly or fully could also cause you problems with your claim especially as there is no time limit (as with 5 years for claims).
So, the moral of this story, in any Business Insurance you undertake, is to take the time to answer the questions fully and divulge what is being asked of you. If you have answered all the questions truthfully you know you have a watertight Business Insurance policy.
Better be safe than sorry.
If you would like any assistance or advice in such matters, please telephone us on 0207 731 3700 or ‘Email Us’