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Understanding and Managing your Exposures

We understand that arranging business insurance can be a minefield, so it is important that you know what your exposures are and how to manage them.

The following shows an overview of the covers available;

  • Property Damage for losses to buildings, machinery & plant, office machinery and contents.
  • Business Interruption for financial loss as a result of damage to your property causing an interruption to your business.
  • Employers', Public and Product Liability for claims brought against you by employees or third parties for injuries or property damage.
  • Professional Indemnity for claims brought against you for breach of contract, negligence, transmission of viruses, defamation or infringement of intellectual property rights.
  • Management Liability including Directors & Officers Liability, Corporate Legal Liability & Employment Practices Liability to cover claims for investigation costs against individuals or the company and also cover for employment tribunal costs.
  • Intellectual Property Insurance provides cover for your defence and pursuit costs in respect of intellectual property litigation / disputes and breach of license agreements.
  • Cyber Liability provides protection against the consequences of a cyber-attack or data breach.

 

Do you need Professional Indemnity Insurance?

Professional Indemnity insurance provides cover for errors and omissions, breaches of contract and financial loss.

Therefore, if you are providing advice, training or get involved in design then we would recommend you purchase this cover.

Compulsory Insurances

Employers' Liability

Employers Liability Insurance is required by law (under the Compulsory Insurance Act 1969) if you run a business to provide cover in the event that one of your employees is injured or becomes ill as a result of working for you.

Motor Insurance

All drivers are required by law (under the Road Traffic Act of 1930) to have in force an insurance policy to cover their liability for bodily injury to or damage to third party property which arises from the use of a motor vehicle.

Public Liability cover

Although not compulsory cover, we would highly recommend that most businesses also purchase this cover.

Should you buy online or via a broker?

When arranging cover most people have a keen eye on cost, ease, speed and peace of mind;

Cost

Contrary to popular consumer belief it has been found that broker pricing was actually better than direct insurance pricing.

The reason for this seems to be principally due to insurers providing different rates to brokers, in order that premiums are lower. Why would insurers provide special broker pricing? Simple: because the risk is lower for the insurer. Brokers are professionally trained to choose the right policy for their customers, therefore avoiding unnecessary claims.

Ease

Whilst the online experience usually proves more pleasant than the phone, most brokers offer an online service, and are far more pro-active after they receive the initial quote request from the customer, often answering queries by personal email or call and helping to reassure customers with a human service. Furthermore, most direct services completely fall down when queries or changes are required that are less common, particularly later in the policy life cycle.

Speed

In the case of time taken to generate initial quotation figures, direct services are consistently very quick, while brokers answer quote requests by personal follow up.

The difference however is somewhat reversed when it comes to mid-term changes, documentation requests and one off queries. The direct services often fall back to large call centres whose staff have little or no real insurance knowledge. In this area brokers are more efficient, making suggestions that consumers find highly useful, saving them lots of time.

On balance, the speed at which quotes were produced by the direct services was not significant to our consumers when compared to the speed and efficiency with which brokers generally managed their policies throughout the policy life cycle.

Peace of Mind that everything is covered

Brokers are professionally qualified and trained to guide the customer through the purchase of their insurance, taking the time to understand the risk presented and ensuring that your exposures are fully covered.

Direct Insurers put too much focus on the consumer to do this work themselves and are therefore unable to match the service level provided by brokers.

Conclusion

Our recommendation to all would be to use a broker, let them shop around for you, and you will likely reap the benefits of their knowledge, whilst knowing that the correct covers are in place.