Oct
05

Insurance Claims

The recession has been felt by many of us over the last couple of years.  Whether it has been in a major way, such as unemployment, or just the rising of costs seemingly across the board, no one has been unaffected.

It seems like the insurance industry is no different.  It has been claimed by a national newspaper, the Telegraph, that companies are more reluctant to pay out on claims since the recession has dominated the headlines.
 
They reported on behalf of the British Insurance Brokers’ Association (Biba), who said their brokers had had a difficult job getting the payouts their customers needed.  Insurance companies were apparently making it harder to access the full amount of insurance promised them as detailed in their policies.

Brokers have intervened in cases where insurance companies have offered lower settlements than  they should have.  In one case specified in the article from the Telegraph, brokers were able to secure a £6,000 increase on the sum originally offered by the insurance company.

It is vital to know your rights concerning claiming on your home insurance, and to understand the workings of the contract, something that a broker can help with.

The association also commented on the number of fraudulent claims – a figure that has also risen due to the recession – and a statistic that insurance companies are all too aware of.  The greatest rises in these deceitful claims were those on home insurance policies.  The cost of fraudulent claims adds around £40 to premiums for home insurance for the rest of the population.

Oct
02

What is Covered by Public Liability Insurance?

Although most small to medium sized enterprises face a daily struggle for financial survival, it is a false economy to skimp on essentials like public liability insurance or employer liability insurance.  In fact, even if you employ only one or two people, you are legally required to have both forms of cover.

The costs of not having PL insurance can be quite devastating for a small business, even if you are a sole trader.  Relatively petty mishaps are today being turned into hefty legal challenges – and the costs can be astronomical, not just in terms of the damages awarded to a claimant but in terms of the legal fees alone, which can be utterly pulverising.  The advent of no-win, no-fee legal services has contributed to the sheer volume of claims now being made – people feel they have nothing to lose if they are unsuccessful and much to gain if they are.

If a client has suffered injury at your premises, no matter how trifling, or you have inadvertently damaged a client’s property whilst visiting theirs (or their homes), public liability insurance will cover any compensation you are obliged to pay.  Moreover, it will cover up to £100,000 in the legal fees incurred whilst defending a claim.  No matter how huge the sum you are being sued for, PL insurance will cover the lot.

If you have not given a lot of thought to insurance cover like this, it is worth the trouble to start getting protected without delay.  No one intends to have an accident, but many people can choose to bring a liability claim against your business.  And these days, such a claim can put an end to that business and plunge you into severe, long-term financial hardship.  This is not a risk worth taking, really.

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