Posts Tagged ‘insurance’
Example (if calculating for a 2013 policy):You must identify Gross Profit and Turnover for the years 2010 to 2015. Estimated figures should only be used when actual figures are not available. The anticipated Gross Profit for the two year period 2014 (£3,200,000) and 2015 (£4,000,000) gives an amount of £7,200,000 for the 2 year indemnity period to commence 1 January 2013. This exercise needs to be reviewed for each policy renewal and the Gross Profit insured amended accordingly. This form of cover is called a “Sum Insured” basis. If the Gross Profit is underestimated then you run the risk of having “Average” applied to your claim on a “Sum Insured” policy. This is where, if for example, you insured for £6,480,000 instead of the correct figure of £7,200,000 and had a claim of £1,000,000 then insurers would only pay 90% (£6,480,000 / £7,200,000 = 90%) and proportionately reduce the claim to £900,000. To avoid average being applied you should be insured on an “Estimated Gross Profit” basis which would remove the problem of average. Although the figures that you are using may be estimated you must specifically request an “Estimated Gross Profit” policy from your insurers otherwise they will issue a “Sum Insured” basis with an average clause included. We recommend the use of an “Estimated Gross Profit” policy – please speak to us about arranging this cover for you. Business interruption can appear a real minefield. If you wish to discuss your requirements or have any queries, please do not hesitate to contact us.
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What Does This Mean To You?It is vital you declare any purchases brought in from outside the EC. It is becoming more and more common for gifts and holiday reminders to be brought back to the UK but if you are spending large sums of money, do not leave yourself open upon return to effectively having no insurance.
To discuss your personal possessions insurance requirements or if you have any queries call us on 01707 883377 or email us on firstname.lastname@example.org. Check out our prestige home insurance page here
Many businesses operate a fork lift truck but for some reason we find it is almost always insured incorrectly. In the event of a claim this may cost a business a considerable amount of money.
So what should you do?
1) Firstly ascertain if your fork lift truck is owned, hired or leased. If owned see step 2. If leased you need to insure to the requirements of your leasing company. If hired, what conditions are you hiring under? The normal conditions are CPA (Contractors Plant Association). Your insurers will grant an indemnity policy based on the total annual hiring charges. Be aware some hirers have been known to put the figure of replacement value in the contract of hire but insurers will only settle on current value (indemnity). Do not agree to this type of contract. It is also important to include in the policy, loss of hiring charges as you will still be charges until the claim is fully settled.
2) Make sure you cover the fork lift truck under your commercial insurance policy. The sum insured should represent the REPLACEMENT cost and not the 2nd hand value. If you do wish to cover the fork lift truck for the 2nd hand value, make sure your insurers are aware! Failure to do this will render you underinsured.
3) Do you operate the fork lift truck in or around the vicinity of a car park or road? You must have road risks cover. Business public liability will, in 99% of policies, exclude motorised plant. If you drive into a vehicle or hit a person, you will not be covered. Road risk policies are very cheap and essential, failing that do you have fleet insurance? You should have no problems placing the fork lift truck on your fleet policy. If your broker has not mentioned this before ask them why?
4) Under current legislation all lifting plant has to be inspected annually and a certificate issued (some plant is more frequent). This may be carried out by the company who service your fork lift truck, however if this is not the case or you do not receive a certificate, you insurers can carry out the inspection for you.
5) Breakdown cover – if your fork lift truck suffers a mechanical breakdown, insurance cover is available to pick up the cost.
6) Lifted goods cover – If goods are being lifted and are dropped, for example, due to a pallet splitting and damage occurs to the goods, cover can be in place to take care of this type of situation.
7) Own surrounding property – If damage occurs due to use of the fork lift truck to your own property, again cover can be in place.
Long Term Agreements Save you money! Or do they?….A long term agreement or LTA as it is often known, is an agreement you can enter into with your insurers which allows a discount in return for you agreeing to stay with the same insurer for a set period of time, usually 3 years. So whats wrong with this? If you have a bad year (a number of claims), insurers can often “get out” of the agreement. If you obtain a more competitive quotation elsewhere, you cannot get out of the agreement! The discount you usually receive for being in an LTA is around 5 to 10%. It is considered in the current market, not a good idea to enter into a contract as many insurers are fighting for business and if you sign up for an LTA you will be locking yourself in. When the agreement ends, if the market is “hardening” (rates are increasing) you will be at the mercy of the market! If you do want to get out of the agreement before it is ended, depending on the insurer, you will have to pay the discount back for each year, thus increasing your insurance expenditure. Many insurers are offering LTA’s. Before you agree, ask yourself: – Do I really want to be locked into a 3 or 5 year policy? – If I have problems with the insurer and want to terminate the agreement, do I really want to pay a premium to do this? Remember, insurance is only as good as the last claim….. To discuss any of the points raised or if you have any queries call David Walton at Bromwall on 01707 894402 or email us on email@example.com or check our commercial combined insurance page here
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