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For many of us, insurance renewals are automatic. This applies to our business, professional and liability insurance as much as it does to our motor vehicle, house and contents insurance.
But they are all matters that should be considered a little further. After all, if the unthinkable does happen, it may well be that insurance is the only thing between you and bankruptcy.
In relation to business insurance, have you considered whether the policy actually addresses the type of business that you undertake, as opposed to the type of business that your insurer or broker, with the best of intentions, thinks that you undertake? Have you actually discussed with your broker what you do, how much time you spend with customers, whether they rely on advice you give as opposed to products that you sell, and the like?
The distinction between public liability (which can often include product liability) insurance on the one hand, and professional indemnity insurance (which usually relates to advice of some form) on the other can be significant, not only in terms of coverage but also in terms of premium, indemnity period and the like.
Equally, have you considered whether your broker and/or insurer will allow you to have a say in how claims are dealt with? Have you considered whether you would have the right to talk to your insurer and their lawyers about the way in which claims made against you should be dealt with?
Imagine a situation where you are chasing a client for an outstanding debt, and they respond with a claim against you for negligent advice and/or provision of defective products which cause them loss or damage. Who will represent you in your claim against them for your outstanding fees? Will it be lawyers of your choosing? Do you have the ability to instruct the same solicitors as the insurer is using to defend the claim that is being made against you, hence reducing costs and time?
All of those factors are matters that should be taken into account in considering what to do when it comes time to renew your insurance. And that is before you even get to consider the question of the premium cost (which, lets face it, is what most of us would rely upon).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
