What not to do when buying Business Insurance…
This is a story of what not to do when you buy Business Insurance… in fact, this extends to any type of insurance including personal ones.
A potential client came to us for an insurance quotation as his current insurance provider could not offer him the right level of cover he wanted as he had simple grown too big for the insurance product he had.
I asked him to provide full details about his business including sums insured which he happily obliged.
After obtaining a number of quotations we offered him the most suitable policy based on price and cover to fully protect his Business.
The quotation was not to his liking as he thought it was too expensive (compared to what he was paying before).
We even managed to obtain a further discount but unfortunately he was still of the opinion that it was too expensive.
He then asked us to reduce his sums insured which would mean he would be underinsured. I advised him that this would be extremely unwise as, in the event of a claim, he would not be fully covered and be open to financial loss.
So, what do you think he did next ?
Well it finally came to light that he obtained cover elsewhere by slashing his cover in half so that he could reduce his insurance premium !
What he did was to dilute his cover to suit the price he wanted to pay or thought he should be paying.
What do you think would happen if a claim materialised ?
In the best case scenario he would get a much reduced payout and in the worst face possible financial ruin. All this just to save a few quid !
If you’re going to purchase insurance make sure you get the cover you really need. Don’t dilute your protection in order to suit the price you wish to pay.
It would be a financial disaster waiting to happen.
If you require assistance with your insurance, please don’t hesitate to call us on 0207 731 3700 or drop us an email.