» Things to watch out for
Excess
An Excess is the first part of every claim that you are responsible for.
Usually you can reduce the cost of your insurance by increasing the Excess
amount.
Amounts insured
It is your responsibility, and vitally important, to supply accurate information
to the insurance company as to the value of your assets. In some circumstances,
incorrectly valuing the amount to be insured could affect your claim. If
you cover your assets for more than they are worth (over-insure), you will
pay a higher premium than necessary. If you cover your assets for less then
they are worth (under-insure), you will not receive enough compensation
to cover your losses.
Pre-set Conditions and Exclusions
Understanding how you are covered, is as important as understanding how
much you are covered for. You should be aware of any pre-set conditions
and exemptions that may exist with the cover. For example some cover is
dependent on you having an alarm fitted or securing your equipment in a
particular way. Full details of conditions can be found in the policy wording
and are shown on your quote schedule.
Know your insurance company
As part of your decision making process you should look beyond the numbers
(cost of cover and amount you are covered for) and examine the potential
insurance provider. It might be better to pay a little higher premium but
deal with an insurer who has extensive knowledge about your industry or
business insurance. You might want to also check the insurers financial
history and claims process before you decide to take their policy.
Insurance documentation
When applying for insurance cover, you may be asked to complete a proposal
form giving information to enable the insurers to assess your risk. Details
will include name, address and business of the proposer, previous losses,
and details of the risk to be insured. When completing the proposal form,
it is important that all questions are fully answered and all relevant facts
concerning the business are disclosed to the insurer. Failure to disclose
all relevant facts fully, whether specifically asked or not, might entitle
the insurer to treat the policy as invalid.