A business insurance policy is a contract between you, the business owner, and the underwriter, or insurer, named in the policy. It is a legally binding contract which will stand up “in court”. It lays down exactly what the insurers will do or won’t do and also what you must do to fulfil your side of the contract.
When you get a new business insurance quote, you will receive three things, firstly some form of verbal confirmation of the premium, secondly a written quote and thirdly a summary of cover, usually called a key facts document. The last two are what a broker, or insurer, must legally provide you. You can accept a quote without receiving the documents, but they must be sent to you as soon as reasonably practical. For example, here at Businessinsure, we embrace the internet and email communication. Whilst we happily post and fax documentation, email is king. We can speak to a customer in Australia, who is looking for a quote for the shop in Aberdeen and email the quote to them within minutes. This is the written proof.
When we get to renewal though, things are slightly different. We always send written confirmation of your renewal, whether for a commercial property owners insuranceor a takeaway, pub or hotel. Usually this is a tacit renewal, meaning if we do not hear from you, then you do not need to positively renew the policy. This is not one of those scams you read about in the rip off Britain articles. The letter is very clear, if you do not want the renewal, then just let us know.
It is a this stage, renewal, that we need to let you know exactly what is going on with any changes in terms, conditions or excesses. This ranges from the changes which really are just administrative, for example where an insurer is changing their formal title, to the important, where an excess has been increased, or cover removed.
This is why you renewal letter is very important and you must read this in full. If you deal through a business insurance broker then they must tell you of any changes. If these are not made clear to you and this negatively affects any future claim, then you have rights of recourse, but this can, and usually does, take time.
When you get your renewal letter through, please don’t just look at the premium, check the letter for details of any other changes.