If you own or run an installation business, how do you know that your insurance policy is the right one for you? Mark Gilbert, MD at Alarminsure, talks to PSi about buying cover
“Do you need some good advice?” might sound like a daft question to ask, but if you buy your insurance online or direct from the insurer you might not be getting any advice about how suitable your insurance is for you.
Many people now turn to the internet to buy insurance, this could be for their car, home, holiday or pet but more and more people are also buying their business insurance online. This can often be quick and feel stress-free; however, the onus then is on the buyer to understand what they are buying and if it is suitable to provide them with the right cover.
Disaster strikes when it comes to making a claim and you find out that you haven’t got the cover you thought you had and you’re left with a big bill to pay, one that you weren’t expecting that can have a severe impact on your cash flow. For example, it is common to think that you have cover for a security system that fails to perform as intended, this is more often not the case as efficacy insurance (with failure to perform cover) is generally not included in a standard insurance policy.
If you go direct to an insurer to buy insurance online, be mindful that the sales teams could be selling on a non-advised basis and can only give you very limited information for you to decide on.
If you are in any doubt as to what cover you need or have a business that needs more specialised cover then you probably need advice, and to get this advice you need to talk to an insurance broker (making sure they can give advice, not all do). At Alarminsure, for example, all our policies are sold on an advised basis.
Advised and non-advised insurance
An advised sale includes the broker:
- explaining why the particular product or provider would be suitable based on the information you give them about your business.
- recommending a specific insurance policy(ies) to you that match your needs.
In non-advised sales, the insurer or broker do not make any personal recommendation, and it is up to you, the customer to decide if you want to buy the insurance. It is important to say that you will still receive enough information to enable you to make an informed decision as to whether the insurance is right for you.
Why is this important?
This is important because if you are not getting any advice you can find yourself in a position where you need to decide if the insurance is suitable and this can mean reading the policy wording, understanding it and making sure that, in the event of a claim, the policy would pay – this could leave most people wanting to lie down in a dark room. People who enjoy reading insurance policies are rare to find! The alternative is to find an insurance broker who can give you the advice you need.
Do I need advice when buying insurance?
This is something to seriously consider; by getting the advice you need from a broker you are tapping into their expertise to assess your needs and find the right insurance for you, usually from a range of insurers and present these back to you with enough information to help you decide on the best cover and explaining to you what it does and doesn’t cover.
Your broker is also on hand throughout the lifetime of the policy if things change and, in the event, you have to make a claim, this can be a very useful extension to your business as these things can take up a lot of time, having someone with experience can be invaluable.
