Cowens Commercial Insurance - Five Things That Could Be Wrong With Your Insurance

INSURANCE … THE FIVE ESSENTIALS Correct Insured Whilst this may seem obvious, you should ensure that the entity insured is the same as that which owns the asset in question or is capable of incurring a liability. A simple matter such as VAT registration and ownership of a property can have a major impact on a claim. Adequacy of Sum Insured Material Damage policies issued in the UK have an 'Average Clause'. This means that you will take your own risk for the proportion of any underinsurance. If you insure your plant and machinery for a Reinstatement Sum Insured of £1,000,000 and at a point of loss it turns out that it should have been £1,500,000 you will receive only two thirds of your claim. Policy Warranties and Conditions The vast majority of insurance policies include warranties and conditions. As you will appreciate compliance is vital if the insurance policy is to operate correctly and it is therefore essential that you understand the warranties that are written into the policy and that you are capable of compliance. Business Interruption - Indemnity Period Approximately 67% of businesses that suffer a major loss fail commercially within two years of that loss. The indemnity period should be long enough for the Insured to return to the same trading position as they were in before the loss, not just back up and running. Experience tells us that most businesses in the SME and mid-market sector will carry 12 months indemnity and for a significant proportion of these, it will be inadequate for their business to survive a major loss. insuring your future today ... ensuring your future tomorrow Business Description This is fundamental to the operation of an insurance programme, however, the devil is in the detail. You will only be insured for the Business Description stated on the face of the insurance policy. It is therefore crucially important that the business description is both accurate and complete. cowens survival capability and cowens insure4biz.com are registered trading names of R A Cowen & Partners Ltd | Authorised and regulated by the Financial Conduct Authority Survival Capability ... just a phone call away Contact your Account Executive today Phone: 01623 649 931

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Transcript of Cowens Commercial Insurance - Five Things That Could Be Wrong With Your Insurance

Page 1: Cowens Commercial Insurance - Five Things That Could Be Wrong With Your Insurance

INSURANCE …THE FIVEESSENTIALS

Correct InsuredWhilst this may seem obvious, you should ensure that the entity insured is the same as that which owns the asset in

question or is capable of incurring a liability. A simple matter such as VAT registration and ownership of a property can

have a major impact on a claim.

Adequacy of Sum InsuredMaterial Damage policies issued in the UK have an 'Average Clause'. This means that you will take your own risk for the

proportion of any underinsurance. If you insure your plant and machinery for a Reinstatement Sum Insured of £1,000,000

and at a point of loss it turns out that it should have been £1,500,000 you will receive only two thirds of your claim.

Policy Warranties and ConditionsThe vast majority of insurance policies include warranties and conditions. As you will appreciate compliance is vital if the

insurance policy is to operate correctly and it is therefore essential that you understand the warranties that are written

into the policy and that you are capable of compliance.

Business Interruption - Indemnity PeriodApproximately 67% of businesses that suffer a major loss fail commercially within two years of that loss. The indemnity

period should be long enough for the Insured to return to the same trading position as they were in before the loss, not just

back up and running. Experience tells us that most businesses in the SME and mid-market sector will carry 12 months

indemnity and for a significant proportion of these, it will be inadequate for their business to survive a major loss.

insuring your future today ... ensuring your future tomorrow

Business DescriptionThis is fundamental to the operation of an insurance programme, however, the devil is in the detail. You will only be

insured for the Business Description stated on the face of the insurance policy. It is therefore crucially important that the

business description is both accurate and complete.

cowens survival capability and cowens insure4biz.com are registered trading names of R A Cowen & Partners Ltd | Authorised and regulated by the Financial Conduct Authority

Survival Capability ... just a phone call away

Contact your Account Executive todayPhone: 01623 649 931