Unfortunately, the devil really is in the detail when it comes to arranging commercial insurance. When looking to arrange cover, all too often the focus is on price. However, when making a claim all that counts is the scope of cover.
There are many pitfalls that can be avoided when arranging business insurance. Our Top 10 Insurance Tips provide useful advice, to assist you in achieving the best cover and value for money.
Insurance Policy Documents | Endorsements
When providing insurance quotations, insurers often propose terms that include endorsements. These endorsements may be used to amend the standard policy wording to:
- Restrict Cover,
- Extend/Enhance Cover, and/or
- Impose Additional Policy Terms and Conditions. These need to be complied with for policy cover to be operative.
Endorsements are a useful way for insurers to provide risk specific cover. It is however important to realise that insurance policies contain General Conditions that apply in addition to any risk specific Terms, Warranties, Conditions and Exclusions. General Conditions apply to all policyholders and these need to be read, understood and complied with for policy cover to be operational in the event of a claim.
General Conditions will vary dependent upon the insurer and nature of cover provided. However, the following are some common examples:
- Claims Notification Conditions
- Reasonable Precautions Conditions
- Minimum Security Conditions
- Intruder & Fire Alarm Conditions
- Compliance with Legislation Conditions
- Fire, Electrical & Gas Safety Conditions
- Portable & Other Types of Heater Conditions / Exclusions
- Subcontractors Conditions
- Hazardous Works, Locations & Products Conditions / Exclusions
- North USA/Canada Conditions / Exclusions
- Hot Works Conditions / Exclusions
- Work Away, Work at Height & Work at Depth Conditions / Exclusions
- Alteration in Risk Conditions
The above are just a few examples and the list is by no means exhaustive.
Terms, Warranties, Condition and Exclusions
It is essential that you refer to your policy schedules and wordings to familiarise yourself with all of the Terms, Warranties, Conditions and Exclusions that apply.
Failure to comply with any Terms, Warranties and/or Conditions precedent could result in policy cover being suspended or invalidated. This is whether applied by endorsement and/or contained within the policy wording.
Furthermore, this relates to all different types of insurance policies including (but not limited to): Combined Commercial, Commercial Legal Expenses, Computer, Contractors All Risks, Cyber. As well as, Directors and Officers, Group Personal Accident & Travel, Marine Cargo / Transit, Motor Fleet and Property to name but a few.
Reading through your insurance policy documents may seem like a far from enjoyable past time. However, it is essential that you do so. It is important that you fully understand the scope of insurance cover and your obligations as policyholder. By doing so, you can reduce the risk of your insurers not providing indemnity in the event of a claim.
For further advice and guidance, please Contact Us Now!
Or Call Us on 01384 442 165 (Monday – Friday 9am – 5pm) if there is any aspect of your insurance arrangements you would like to discuss further