Why it’s so important to work with an independent insurance broker for your commercial insurance

Firstly, let’s qualify what we mean by ‘independent’. There has been considerable consolidation within our sector over recent years with larger brokers buying smaller brokers and insurers acquiring brokers. An independent insurance broker is one which is not owned or part-owned by an insurer or another broker.

The key benefit of working with an independent broker is that they can scour the whole market for the right insurance cover for your business. They are not tied to a panel of insurers and can act independently on your behalf.

Added-value

They will have an in-depth knowledge of the nuances in policy wording for each insurer and be able to advise you on the best cover for your business. Because they are not under pressure to place more business with one insurer over another, an independent will be able to give you a practical view on exactly what you are getting for your premium. They will also advise on what action you need to take to ensure you comply with the policy wording.

Help when you need it most

An independent broker will have experience of dealing with most insurers and will be well placed to advise on how best to manage the claim if you ever need to. A good one will work with you to put the claim together and be present with you at any insurer visits.

Due diligence

An independent broker will act on your behalf without the pressure of commercial arrangements.  You need to work with a broker who only ever places cover with financially stable insurance companies. Afterall, if you ever need to make a claim, you need to ensure your insurer is in a position to settle the claim when you need them to. 

Proud to sponsor the Best Hotel Group category at the Best Loved Hotels Awards

Our Director, Clive Gamlin attended the Best Loved Hotel Awards this week at Tewkesbury Park Hotel to present the award for the Best Hotel Group winner. 

It was a fantastic evening and many congratulations to the Devonshire Hotel and Restaurants Group for their well-deserved win.

Best Loved Hotel Awards are designed to celebrate and showcase excellence across Best Loved properties throughout Britain and Ireland. As we look after the insurance for many clients in this sector, we know just how much hard work goes into delivering the very best customer experience for guests.

Congratulations to all the winners and nominees, it was an honour to be there and to sponsor the Best Hotel Group category. 

Beware the danger of assumptions. Why you need to be clear on your commercial insurance cover.

We all know the phrase ‘assume’ makes an ‘ass out of u and me’. When securing commercial insurance cover, it often happens that cover is arranged based on certain assumptions by you, your insurer and your broker.

Your broker will assume:

• -          you’ve given full disclosure
• -          you will read the policy documentation
• -          you will comply with all the terms of your insurance policy

The insurer assumes:

• -          you comply with all regulations
• -          your premises are secure and your alarms, lock and electrics are all British Standard.
• -          All plant, machinery and buildings are maintained and in a good state of repair.

As the client, you naturally assume that your broker has done all that is necessary to ensure that you have the right commercial insurance cover for your business. However, it’s important that you understand what your broker has recommended and why. Afterall, if something goes wrong and you need to make a claim, you do not want any nasty surprises.

So how do you ensure you have the right level of commercial insurance?

• -          Make sure your broker has taken the time to visit your business premises and identify the risks.
• -          When your broker comes back with a quote, make sure he or she takes the time to explain exactly what is covered and why.
• -         Remember, there are no stupid questions. The only stupid ones are the ones you didn’t ask. Ask your broker to explain the documentation to you. It’s important you understand exactly what you are covered for and what you are not.
• -          Be realistic on price, cheap insurance, generally means cheap cover. You need to work with your broker to understand what is worth paying for to ensure full protection and what you might be willing to compromise on.

If your broker hasn’t visited you or walked you through your policy documentation, it is highly likely that there have been assumptions made. And the last thing you want is to find out these assumptions are wrong when it comes to making a claim.

If you have any concerns about your commercial insurance, please speak to the Castlemead team.

Underinsurance, what is it and what could it mean for your business?

As a commercial insurance broker, we arrange insurance for clients in many sectors. When reviewing client’s insurance cover for the first time, we often find they are underinsured.  This post will help you understand what this is and what it means for your business.

What is underinsurance?

This is when the sum insured for your plant, machinery, buildings etc is inadequate. 

For example, the reinstatement value of your buildings is £400k but they are insured for £200k. Now imagine there has been damage to the tune of £100k and you now need to put a claim in for that amount to make the necessary repairs. The insurer will reduce the claim by 50% because you are underinsured by 50%. This is known as the average clause and it applies to almost all insurance policies.

In this scenario, you will have to find the other £50k to make the repairs. If you do not have access to this sum, you run the risk of impacting the day to day running of your business because you can’t make the repairs straight away. Even if you do have access to the amount required, this means that there is less money to invest in your business. Or in the worst-case scenario, your business can’t survive this loss.

Buying insurance is often a very cost-driven activity and if we’re honest, it can feel like a bit of a chore. But it’s so important to ensure you have the right level of cover should the worst happen. The saving you might make by not having proper and adequate cover is marginal compared to the potential cost of covering the insurance gap when you need to claim.

What happens if you think you are underinsured?

Our advice is to speak to your broker and ask them to review your policy with you. If you’re worried, we can conduct an independent audit of your insurance to help you identify whether you may be underinsured and what action you need to take. Find out more about our audit service.