Should you buy Business Insurance from Comparison Sites? Our view….
In a recent report (July ’14), the financial watchdog, the Financial Compensation Scheme (FCA), brought to our attention that Comparison Sites do not always provide clear information to the consumer buying insurance.
For example, if you are not fully cognisant of your policy excess or you buy insufficient cover without knowing it or you make a claim for an event only to find that it is excluded from the cover then you could be in for a painful financial shock when the time comes to claim.
At the very least, you could be out of pocket. At the worst, your business could face ruin or even bankruptcy.
An FCA spokesman said: “….. our review found that they [Comparison Sites] were not meeting our requirements in delivering fair and consistent outcomes for consumers”. They have asked Comparison Websites to take action on the specific areas identified where they are not meeting the required standards to ensure customers get a product that meets their needs.
We know this is terribly boring stuff to you the reader but the report does highlight the importance of fully understanding what you are buying in terms of business cover, and who you are buying it from. For example:
- The study showed that some consumers assume that the Comparison Site had provided them with quotes on the most appropriate cover for their individual needs, and had assessed the suitability of the policy for them;
- Some of the Comparison Websites are increasing the risk that consumers may buy products purely based on price, unaware that the different policies displayed in the search results are not all the same and have differing levels of cover, excesses and exclusions etc.
The moral of the story
Legal obligations aside for needing Business Cover (think: employers’ liability cover and public liability insurance), Business Insurance is such an important product to have – after all, it protects your livelihood and your reputation.
And while it is always easy to buy insurance online if you know what to look for, there’s no harm in ringing around various insurance providers and chatting things through with them.
That way you can get specialist advice and access to the most appropriate cover for your business needs, whether you are looking for a ‘simple’ tradesman insurance policy to the more complicated Business Insurance products.
Titan Insurance is a specialist Business Insurance provider covering over 2,000+ Business Trades so if you need any help or advice please call us on 0207 731 3700 or ‘Email Us’