Overcapacity In The Insurance MarketDue to the overcapacity in market competition getting more intense, insurance advisers and even insurers are striving for business but this is not good for the insured. This can lead to a degree of misrepresentation. In order to compete on premium corners are being cut without a thought to the effectiveness of the policy. A small saving at the inception of a policy can restrict the cover resulting with a loss of many thousands of pounds after a major loss or in the worst case, millions of pounds. We have found that not enough attention is given to business interruption insurance and almost 80% of businesses suffering a major loss are underinsured or have their claims declined on the basis of non-disclosure. Following the bomb in Manchester a few years ago 40% of all organisations effected went out of business, never to return. When taking out a policy or renewing a policy make sure that all relevant details of your company and directors have been passed to the insurers. Finally make your adviser confirm that the cover is satisfactory and that they have assessed the business for all potential risks. Larger organisations should get an independent assessor to review the company’s policy cover in case the adviser has missed an essential part of the insurance. If a claim is declined then the insured would then look towards their broker. If negligence can be proved, brokers professional indemnity would have to settle the claim but this could lead to a lengthy battle, possibly through the courts. It is always important to obtain details of the brokers professional indemnity level of cover and make sure it could cover any potential claim. For help and advice on your own policy, contact Roy or David on 01707 883377 or email us on firstname.lastname@example.org
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