Insurance comparison experts from Quotezone.co.uk have highlighted six ways businesses may have unknowingly invalidated their business insurance.
Business insurance protects against financial loss if something goes wrong while undertaking business related activities. From small business start-ups with a couple of employees, to large-scale corporations with a team of hundreds, insurance protection is key and it’s not uncommon for providers to deny claims, if the agreed terms have not been met.
The main types of business insurance can range from commercial property insurance to public and employer liability and professional indemnity insurance – protecting the property, staff, the public and even their reputation.
Employers’ liability cover is a legal requirement if a business has any staff, they could face a £2,500 fine for every day they weren’t covered.
This fine can be backdated so it could be very costly. Businesses could also be fined £1,000 if they do not display their EL certificate or refuse to make it available to inspectors when they ask.
According to the Health and Safety Executive statistics 2022/23, 1.8 million working people suffered a work related illness in Great Britain – with a cost of £20.7 billion for injuries and ill health from current working conditions.
Greg Wilson, Founder and CEO of Quotezone.co.uk, said: “It can be risky setting up your own business, I started Quotezone 20 years ago, building from just four employees to a team of over 80 across two European cities.
“It’s no secret that business owners have a lot to contend with – setting up a reliable insurance policy may not be at the forefront of every owner’s mind, but it should be.
“Simple things like keeping the provider up to date on any changes to the business, making sure to keep the business premises secure and providing accurate details when taking out insurance can make all the difference.
“Your business insurance policy is there to protect you if anything goes wrong, and could protect you from forking out large pay-outs to cover a disgruntled customer or damage to your business premises.
“It is really important to make sure you are following the guidelines of your insurance, in order to avoid invalidating your policy.
“The worst thing would be to find out a small mistake you made previously has actually invalidated your insurance without you realising.
“Although it may seem like a labour-intensive task, reading the ins and outs of your insurance terms is essential to make sure you are protected. ”
Pointers to help insure your policy is valid:
1.Double check details
When taking out your insurance policy, you must ensure all details are as accurate as possible. Sometimes, insurance providers will have limited or generic descriptions to choose from when signing up your company. It is important to make sure you choose the option that most accurately describes your business, or seek advice from the provider. Providing the wrong business description could invalidate your policy.
2.Take serious security measures
If your business premises are broken into, you will need to provide evidence of forced entry. Training staff to try and keep all windows and doors locked at all times, will help ensure your claim will be valid if the worst were to happen. Make sure to also set your alarm each time you leave the building empty.
3.Inform your insurer of any changes
Any changes to your business, for example a change of address, change of name or business functions, must be communicated to your insurance provider to make sure all details on your policy are accurate. Any new assets, change in earning, or employee numbers, should also be updated on your insurance policy, or your provider may refuse to pay out.
4.Keep up maintenance
Part of taking out an insurance policy is making an agreement with your provider to keep a certain level of property maintenance. If you need to make a claim and your provider decides you have not been taking proper care of the building, the current claim and any future ones may be rejected.
5.Don’t delay on renewing
Procrastinating on your policy renewal forms can be costly, especially if you need to make a claim and find yourself uninsured because you left it too late to renew. Shop around and compare quotes as early as possible to ensure a competitive price.
6.Keep your provider in the loop
If something were to go wrong, the worst thing you could do is try and resolve it yourself without the help or advice of your insurance provider. If you decide to pay an unhappy client and then need to take action further down the line, this can harm your insurer’s position and make it less likely to get the result you want.
Businesses should check with their regulator and professional body to ensure all obligations are met and adequate protection is applied – Quotezone can help business owners compare and find savings on business insurance and all sorts of related products such as landlord insurance. Compareni.com can help those living in Northern Ireland.