Business Insurance has a hidden weakness – does your policy protect you properly?

Insurance claim departments are taking a hard nosed approach – make sure you’re covered

I recently heard about three businesses who have been robbed of £250,000 assets and their company insurance is not paying out. Today, I heard about another case of a business getting caught out and insurers used terrible judgement to decline the insurance claim.  I am trying to use the information superhighway to show you how to ensure this doesn’t happen to you or people you know that run businesses.

The scene of the crime

Criminals have been climbing into manholes and cutting telephone lines at targeted premises. This triggers the alarm and Police and a member of staff attend the premises. There’s absolutely no evidence of a break-in so the Police and staff withdraw. After everyone has left the premises are then broken into yet the alarm doesn’t sound because the lines have already been Read the rest of this entry

Want to secure cashflow despite bad luck?

Fire risk assessments are not exactly high on the list of priorities for everyone. Some small businesses might think fire evacuation procedures are not important. So spare a thought for the business owner in Scotland who didn’t think a fire would ever affect his organisation.

The business was unlucky enough to suffer a fire and they didn’t have an evacuation procedure, they probably couldn’t find the time to do it – especially as there 101 other things to do every week to keep the business afloat.

The fire brigade arrived yet the absence of an evacuation procedure (which should be tried and tested) meant that no-one at the premises could tell the brigade if anyone was left in the building. Read the rest of this entry

Can contractors insurance enhance a reputation?

Here’s a brief explanation of how accidents can happen, the benefits of quality service and how reputations can be enhanced when bad luck turns up.

There seem to be a lot of people damaging windows in Bond Street these days. Not all of them are sinister. Here’s a true story about what can be done to prevent accidents turning into disasters.

A client had the misfortune of damaging the window of a jeweller on Bond Street whilst he was working there. The windows are supposed to be “bullet proof” yet it didn’t stop a sparky’s screwdriver – he was working inside when it happened.

This electrical contractor has a great reputation. Often working at high class restaurants and retail outlets in airports, they have always been careful to ensure they have adequate cover. And they insist we arrange insurance with companies that are willing to help as soon as a claim occurs.

This happened on a Sunday and a call reassured the jeweller that they had adequate insurance and they could order an immediate replacement window because the damage would be covered without admitting legal liability of course. They were able to do this because they understood the claim process and knew who to call to check they had the right cover. How many people can say that?

The new window was installed without delay yet we were asked to intervene when the cost of the glass (£18,000 from Germany) increased because the pound had weakened between the time the order was made and the settlement cheque delivered. We contacted the loss adjuster and they arranged for the increased settlement. And the insurance company benefitted from their willingness to see reason.

The end result was a win for everyone. The contractor had increased his credibility, the jeweller is certain they used the right contractor, the insurance company paid the claim and secured the client’s business for years to come. The insurance company also learned to settle claims promptly or suffer the consequences of currency fluctuations.

These are not the only challenges contractors face, click here for an article highlighting how subcontractors can avoid problems with HMRC.

Top Tip: Always ensure you know your claim process. It’s extra prudent to try the claim reporting number and enquire about the claim process before you buy. And get your broker to check the insurance of anyone working on your premises – you don’t want to suffer a dent to your finances because they haven’t insured themselves properly.

See our top tips section for simple ways to help yourself today.

Insurers tighten their belts on business claims

Jason Cobine of insurance brokers Cobine Carmelson explains why insurance companies decline business interruption claims and offers tips on how accountants can secure the proper payment for their clients.

It’s not exactly news that insurance companies inspect paperwork relating to large claims with a fine tooth comb. In the current climate they may also be lowering their sights and taking a closer look at smaller businesses claims.  Will your clients’ cash flow be affected if they suffer a claim? How can you help your clients check they have the cover they require? Read on for a handy hint that could potentially save your clients thousands of pounds. Read the rest of this entry

What is cyber insurance?

Twitter has experienced problems this week. Could it happen to you? What happens when your website is hacked or your e-commerce platforms compromised? Does your theft or loss of income insurance kick in?

The answer is that all three are unlikely yet there is something you can do to . Modern risks can be covered by contemporary insurance policies. Ever heard of cyber liability? It is an emerging form of cover designed to protect businesses in the virtual World. Read the rest of this entry

Protect profits before you’ve grown your business

I recently had a meeting with a gent who manages large construction projects and he was surprised to learn that you can insure loss of profits before a business starts trading. This is a little known cover that works well in retail, leisure and property based businesses. Especially if there has been a huge investment or pressure to start trading is intense.

Imagine a restaurant facing this scenario, a huge opening night was planned, it was in a beautiful setting alongside the Thames and great PR had lead to huge interest, both in the press and online. Opening night was planned with a guestlist to die for. A-listers were ready to sample the finest dining and the most opulent surroundings that London had to offer.

The owners were sure the opening night would give them the start they needed. The income targets set by the investors were understandably huge and the banks had grown impatient because the opening had already been delayed due to planning concerns and snags during the development.

Come the day of the opening last minute deliveries were being made when a gust of wind caught one of the spectacularly unique glass front doors and smashed it. Quite apart from the mess, this was the last thing they needed. The glass couldn’t be made or fitted in time so there was no alternative but to cancel the opening. Fortunately, the insurance adviser had the foresight to recommend cover for this scenario after asking the owners what would most affect their income and reputation.

The claim was for profit not earned from the proposed day of opening to the eventual day of opening. The opening went ahead at a later date and the claim was settled once all the information had been gathered by the claims department.

Top Tip: This insurance is not provided by the builder, that’s a common mistake. The builder cannot be held responsible for anything that happens after the premises have been “handed over” to the owners. And it’s probably unreasonable to expect them to pay for gusts of wind. Tell your insurance advisor about scenarios that will affect your business, especially if you have one “off items” that are critical to your operation.

See our top tips section for simple ways to help yourself today.