COMPLETE this well-known saying: “As useless as….” Okay, so there may be a few different answers, some probably a bit cruder than others, but let’s not go there.
How, about ‘as useless as an insurance policy that doesn’t pay out when you make a claim’? Right, not very catchy is it?

But the fact is that if you are forking out for insurance, you’ll be wasting your money if it doesn’t deliver when you need it most. A bit like having a chocolate fireguard or an ashtray on a motorbike you might say.

Of course, when an insurance company doesn’t pay out on your claim, you’ll probably have a bit of a grumble about how a big company was swindling the little man. But, often rejected claims can be avoided if you get everything in place properly at the outset.

By heeding our advice, one of our customers managed to save over £14,000. Imagine having to stump up all that cash if something went wrong with your business. In some cases, it might even involve having to let someone go or it could even do irreparable damage to your business.

You can avoid all that heartbreak further down the line by considering the three main reasons insurance companies don’t pay out claims.

It’s often said that honesty is the best policy, however if you manage to find a business insurance plan which includes a free two-week holiday in the Bahamas and a BMW, you’d probably dispute that claim.

Still, being up front with your insurer is essential. One of the most common reasons for insurers not paying out a claim is inaccurate information. Don’t lie or conveniently leave something out when you are sorting out your policy.

It may have been fun to lie about your age when you wanted to get into a nightclub when you were 16, but telling porkies about how old you are could invalidate your policy and give the insurer a classic open goal when it comes to turning down your claim.

Other areas you need to be honest about include the nature of your work and the size of your operation. In the case of life insurance, things like pre-existing medical conditions should not be disguised either.

Supplying your insurer with the correct information from the outset will make it harder for them to turn down your claim.

The second area you need to pay particular attention to is your history. Don’t worry, nobody’s going to want to know if you had a dodgy 80’s haircut or bleached jeans back in the day. Your insurer will simply want to know if you have had claims within a certain period of time. You’re normally asked if you have had any claims within the last five years, so make sure you own up. Claiming on your insurance isn’t usually a regular occurrence, so it should be easy to remember if you have submitted a claim in the last five years. Saying you forgot simply won’t wash – a bit like those blonde highlights.

Finally, getting your sums right is also essential. This is especially relevant when applying for buildings and contents insurance. Make sure the amount you want to insure is enough to cover any potential damage. It can be tempting to insure for a lower sum in an attempt to cut the cost of your premium, but this really is a false economy as it may reduce your settlement payout or even flat out refuse to pay anything.

Taking a little bit of time now can ease the pain of rejection later on. So make sure you get value for money from your insurance by getting it right first time.

If you need any advice regarding your Business or Property Insurance call us on 0207 731 3700 or email us.