Beware the danger of assumptions. Why you need to be clear on your commercial insurance cover.

We all know the phrase ‘assume’ makes an ‘ass out of u and me’. When securing commercial insurance cover, it often happens that cover is arranged based on certain assumptions by you, your insurer and your broker.

Your broker will assume:

- you’ve given full disclosure
- you will read the policy documentation
- you will comply with all the terms of your insurance policy

The insurer assumes:

- you comply with all regulations
- your premises are secure and your alarms, lock and electrics are all British Standard.
- All plant, machinery and buildings are maintained and in a good state of repair.

As the client, you naturally assume that your broker has done all that is necessary to ensure that you have the right commercial insurance cover for your business. However, it’s important that you understand what your broker has recommended and why. Afterall, if something goes wrong and you need to make a claim, you do not want any nasty surprises.

So how do you ensure you have the right level of commercial insurance?

- Make sure your broker has taken the time to visit your business premises and identify the risks.
- When your broker comes back with a quote, make sure he or she takes the time to explain exactly what is covered and why.
- Remember, there are no stupid questions. The only stupid ones are the ones you didn’t ask. Ask your broker to explain the documentation to you. It’s important you understand exactly what you are covered for and what you are not.
- Be realistic on price, cheap insurance, generally means cheap cover. You need to work with your broker to understand what is worth paying for to ensure full protection and what you might be willing to compromise on.

If your broker hasn’t visited you or walked you through your policy documentation, it is highly likely that there have been assumptions made. And the last thing you want is to find out these assumptions are wrong when it comes to making a claim.

If you have any concerns about your commercial insurance, please speak to the Castlemead team.