Category: Insurance Brokers

Knowledge is power

The very nature of insurance requires that only a few individuals have losses, whilst the many contribute. For this reason, some customers can go through a lifetime with no issues on any of their insurances. This is one of the reasons we often shop and select products based on price. However, when there is a problem, it can often be a distressing time for the customer.

Defective stairs claim declined

It’s a commonly held belief that insurers are keen to avoid claims.

The truth in our experience is that whilst insurers do look to be fair, it’s also useful to have a strong argument and expert advisers at hand to help put any borderline claims through.

In this case, our client contacted us to say that a metal staircase in their premises was cracking and had been deemed to be unsafe.

Insurers assessed the claim and established that the damage was caused by defective installation and therefore was not covered by their policy. However, any consequences of this defective work would have been covered, such as the staircase collapsing and injuring staff or members of the public but the rectification works were not.

On this occasion, there was enough information to support insurers on this declinature (If you are in a similar situation, this may not be the same for you as this claim had a specific set of circumstances).

• On this occasion, there was enough information to support insurers on this declinature (If you are in a similar situation, this may not be the same for you as this claim had a specific set of circumstances).
• On this occasion, there was enough information to support insurers on this declinature (If you are in a similar situation, this may not be the same for you as this claim had a specific set of circumstances).
• On this occasion, there was enough information to support insurers on this declinature (If you are in a similar situation, this may not be the same for you as this claim had a specific set of circumstances).

Ordinarily our involvement would end here but as our expertise goes beyond ‘The standard’ we were able to put the client in touch with a commercial solicitor who was able to reclaim the costs of the repairs from the landlord as the installation had been carried out by them prior to the client moving in.

This resulted in the client not losing £25,000 in estimated repairs. Sometimes looking beyond the insurances can prove invaluable.

Knowledge is power: make sure you have it on your side.

Most liability policies which we sell will be arranged on a declaration basis. This is also known as an adjustable policy.

Almost no client will be able to accurately predict their final turnover and wage roll at the beginning of their year. After all business may go up and down through no fault of the proprietors.

Insurers require your estimated financial figures to provide you with a price for your policy. It would be unreasonable for insurers to refuse cover if your turnover was not completely accurate when a claim comes in. After all you can only provide estimates at the beginning of a financial year.

For this reason, insurers will allow you to provide ‘Estimated’ figures at the beginning of the policy and then submit ‘Actual’ figures at the end of the insurance period. Insurers reserve the right to charge for any under estimation. In some cases, insurers will even agree to return a portion of the premium in the event that you have not achieved the original estimates.

There will usually be a condition within a policy which states that if your turnover increases by over 25%, or sometimes even 50%, then you need to notify insurers immediately. This means increases below this level only need to be declared at the end of the year.

Does this allow you to ‘under declare’? In short, no. The requirement is that you accurately declare your predicted turnover. However, if an insurer does not allow a return premium for overestimated financial figures (which most policies no longer provide) then you should be careful when estimating your figures. It is always better to owe money at the end of the year than be unable to claw back any over payment.

As an insurance broker, I have seen, in recent years, a tendency from insurers to waive the declaration charges or reduce these significantly if an insured agrees renewal with the existing insurer.

This can sometimes make it hard for clients to move from one insurer to another but can also work to their benefit.

What is the correct Indemnity period to select on my Business Interruption policy?

The answer to this question needs to be assessed on a case by case basis. Here are some issues to consider:

1. The first is, that it will almost always take longer to get your business back up and running than you expect.
2. Insurers confirmation of cover: most clients expect this to be instantaneous but the reality is that following a large loss, insurers will want to carry out an in-depth investigation and it’s not uncommon for this to take a considerable amount of time.
3. Site clearance: following on from a major loss, you will have to human growth hormone pills price clear an existing site. This will take time and we have seen cases where asbestos has been found and added a considerable amount of time to the site clearance timetable.
4. Planning process: Will you need planning permission following a loss? How long will it take you to get an architect, contractor or engineer? Most of us will have had some experience of works in our own houses: did these go on for longer or shorter than originally planned?
   Although you will have support, even insurers have to deal with demand and supply pressures.
5. Discussion time: it’s very hard to agree things quickly when so many parties are jointly responsible. In one of our large loss cases, valuable time was lost as the insured and loss adjusters argued over how much and how long various things would take or should cost. This meant that by the end of the process the client had a lack of indemnity time.
6. Is the property listed? If so you will need additional time to consult with the relevant bodies.
7. How long is the lead-in time for any replacement machinery? You should also consider the delay between the incident and when you will order a replacement machine. If you have a 12 month indemnity period and there is a 12 month lead-in period for machinery, you will need to give yourself time to be in a position to order the replacement equipment.
8. What impact will the loss have on customers? Will you need time to build up a new client base?

The above steps are just some examples of how you should guide your thought process when choosing which indemnity period you will have for your business. At Movo, we have had experience of having to deal with several large losses. Some clients will have excellent disaster recovery plans to put into place, whilst others will not.

As your insurance agents we will be there to support you but insurers will only provide cover for the period you buy.

Please consider carefully the indemnity period required and perhaps even extend it a little to give yourself some flexibility.

The National Health Service (NHS) is a fabulous institution and when it was created in post-war Britain, the concept and positive vigour it provided to the nation was one that was greatly needed at the time. The NHS still remains one of the most enviable health care systems in the world. However, the ever-increasing population and financial constraints within the NHS have led to shortcomings causing huge delays for patients and long waiting times for treatment. If you are self-employed or on statutory sick pay and need to return to work, delays for medical treatment can be a real challenge.

You may therefore be tempted by one of the many private medical insurance (PMI) policies available on the market which are designed to meet individual needs and to offer the quickest access to medical treatment. With 10% of the population having private medical insurance and over one million operations performed privately every year, PMI certainly seems like a viable option.

However, you need to think carefully before taking out private medical insurance. Pre-existing illnesses, long-term conditions and emergency treatment are not covered under PMI. Speaking to a seasoned insurance advisor who knows the policies available in the market place can pay huge dividends. For example, some policies offer a restricted choice of hospitals, limited cancer cover or not enough outpatient cover.

How your premiums are calculated can also be different from insurer to insurer. Even though most insurers will offer you the choice of individual or family cover, if you’re opting for family cover, some insurers take the age of the oldest person in the family and base the premium on this, while others cost it on an individual bases, which may work out cheaper.

Movo Insurance Brokers are delighted to announce the expansion of our team, with the official opening of our Eastbourne office.

As a leading broker in the insurance field, Movo Insurance is a fast-growing, young and dynamic brokerage with offices in Orpington, Kent and Cowbridge in south Wales. Adding an office in Eastbourne to our portfolio will help us deliver a better service to our customers in the south east.

Jon Shortell, Corporate Client Director, announced on 1st of June 2018 that the move had gone smoothly and all systems were operational.

Golan Lambranzi, Managing Director of Movo Insurance said:
“The Eastbourne office is our third servicepoint in the UK from which we can deliver insurance to our customer base. We are really excited to be based here, and we will be looking to recruit into our team from the local community.

Our community spirit doesn’t end there. In time, we hope to participate in community projects. Movo Insurance allows all our staff to also be shareholders in our company – so we already live and breathe community ethics.“

Jon Shortell, Corporate Client Director added, “The whole team is excited to become part of the Eastbourne community and are looking forward to working with businesses and individuals in the area who are looking for expert insurance assistance.”

Why not pop in and see Movo in our new home at St Luke’s Parish Centre, Stone Cross?

The kettle is always on and we would be pleased to see you.

Movo Insurance Eastbourne
St Luke’s Centre
Rattle Road
Stone Cross
Eastbourne BN24 5EB
T 01323 404500

When is it appropriate to use unrated insurers? That is a question that needs to be answered on a case by case basis.

It is often the general perception that all unrated insurers should be avoided, but the truth is that these insurers often serve a purpose, and they are not all the same.

In this article we will try and help you make the right decision for your business when you have the option of an unrated insurer.

What is an unrated insurer?

When you buy insurance, you are essentially canada steroids for sale buying a promise that your claims will be met should unforeseen circumstances occur. The ability of the insurer to meet these potential future liabilities will be judged based on their financial position. For this reason, most insurers will seek to be assessed by credit rating agencies such as Standards & Poor’s, Moody’s Investors Service or Fitch Ratings. In simple terms, there are various A level ratings but usually, any A rating is deemed sufficient by most clients and brokers. Often even a B rating is sufficient and there are examples of many household names having had B ratings at some point.

Why aren’t all insurers rated by these agencies?

That’s probably a question which is better answered by insurers, but this author’s experience has been that when asked, insurers usually respond that the cost is prohibitive.

Smaller insurers, in particular, seem to find it challenging to achieve a rating. It is also true that it would be very hard for a new entrant to get an A rating at the first time of asking and therefore some may believe that a B rating may be more damaging than having no rating.

Is there a risk to using unrated insurers?

Absolutely. You should always consider carefully whether an unrated insurer is right for you.

One question to ask would be whether or not you would have access to the FSCS compensation (or home countries equivalent) scheme. Only business up to a certain turnover will qualify for this scheme.

What happens when an insurer goes bust?

This scenario is best described using a single word. Stress.

With some insurers you may have some time to replace cover. With other insurers, like in the case of Alpha Insurance most recently, cover was terminated immediately and therefore thousands of clients were left to find immediate alternative cover. Another, even more stressful circumstance in Alpha’s case, was that the cover was mainly motor insurance for taxi drivers which is required by law. This would have meant some drivers were unable to earn their living.

In some cases, the FSCS will respond and provide some protection but it will rarely be as smooth as making a direct claim and could take longer.

Premiums could be lost and in some cases, you could be left to manage the claim yourself.

The degree of pain that a client will experience will very much depend on the circumstances, but for some, it can become a nightmare with issues lingering on for years.

So why do people use unrated insurers?

Unrated insurers are mainly used due to premium issues or the unavailability of cover via traditional insurers.

Yet, if no one will provide you with cover, having some protection, even if it is an unrated insurer, will be welcome. Similarly, if there is a big difference in premium making the decision regarding an unrated insurer become a difficult one to make.

How do I decide what to do?

Insurance brokers provide you with expert advice and help you manage your risk. Choosing an unrated insurer may or may not be the correct decision for you, but what is important for us at Movo is that our focus is on finding the right solution for you.

It certainly is less risky for brokers to only deal with rated insurers but reality often forces us to review all options and help you make the best decision. Managing risk includes managing which insurer you will use and how much you are willing to pay.

This decision-making process will also happen on quality of cover every time you compare two products side –by-side. Final decisions are often based on price, quality of cover or insurer.

In an ideal world, everyone should use rated insurers, particularly if pricing is very close. However at Movo, we have made the decision to help you by putting all options on the table so you can decide what is right for your business.

Knowledge is power

Title: Motor bike theft claim declined

The very nature of insurance requires that only a few individuals have losses, whilst the many contribute. For this reason, some customers can go through a lifetime with no issues on any of their insurances. This is one of the reasons we often shop and select products based on price. However, when there is a problem, it can often be a distressing time for the customer.

A motor bike theft where cover was declined

Insurance is so often judged on the basis of cost. Clients will rarely read the full policy wordings and will rely on the advices of the intermediary selling the policies to them.

The crux of this complaint was that a client, unconnected to, and not insured by, Movo, had his motorbike theft claim declined on the basis that he had failed to adhere to the garaging warranty.

The policyholder had been with the same broker for over three years and it appeared that there was in fact a garaging warranty of which he was not aware. Frustrated and running out options the client asked Dan Ricci at Movo Insurance for help.

After investigation, it turned out that the policyholder had been moved at the previous renewal to an insurer that required the bike to be garaged. The reason this policy was put forward was because it was cheaper. The broker had failed to point out however, that it was unsuitable for the client based on the information he had submitted originally. We drafted a complaint email on behalf of the client:

I am writing to register my concern that following the theft of my Motorcyle registration LY12 BJX on xxxxxx that as it was not in my garage at the time of theft, an indemnity will not be provided.

 Having reviewed my previous documentation, it is my opinion that you have failed in your obligations as an intermediary to:-

1. Provide clear advice or warnings on the implications in moving insurer at renewal 2015
2. Did not even provide me with terms from my existing insurer or the option of remaining with them. Can you explain why? Is it because you would obtain a higher commission or profit share if placed with Zenith?
3. Provide a clear comparison between the cover afforded by the new Insurer against that of my previous one
4. Provide greater emphasis on the terms of the Zenith scheme
5. Provide compliant accurate and compliant documentation

  1. ) I refer to document 1 above which was the documentation issued when I first insured with Bennetts Bike Insurance. The Garage Vehicle Clause confirmed the following:- This was fully acceptable and understood.  This was fully acceptable and understood.

 

2) When my policy fell due for renewal in 2015, I received the renewal documentation (document 2) in which you had confirmed that you had searched the market and the lowest quotation found was with Zenith Insurance plc. The front page of your invitation confirmed that there was nothing more for me to do, unless my details had changed (which they had not). The second paragraph asks me to check my details. There is no reference to checking any endorsements for example or changes in cover. (This comes later in the documentation)

 I am very sure that you have an express duty to draw a consumer’s attention to the importance of checking endorsements, warranties or exclusions especially when changing insurer where the terms are bound to be different or more onerous, and as you can appreciate the front page gives the impression that nothing has changed.

Turning to the second page of the document, you have stated the terms of the ZN Scheme, in which a Garage Vehicle Requirement endorsement has been included. I think you have to agree that the endorsement is poorly placed, it is not prominent enough and could easily be misread. Again there is no warning to read the warranties nor implications if ignored. Furthermore it states that I have agreed to keep my vehicle in a locked garage or building at my address when it is not being used. I do not recall expressly agreeing this so I can only deduce that you have presumed this on my behalf. The statement of fact originally completed confirms the bike to be kept in a garage as this is where it would have been kept for the majority of the time.

Lastly and very importantly within document 2 you have a page headed “Important changes to your policy”.

Nothing is advised with regard to the change in garaging endorsement, which you must agree is an important change. All this page does is refer to the “Description in Cover” section, which confirms the cover and excess.

A Broker has a duty to look after the interests of their policyholder, provide best advice and ensure that they provide the policyholder with all the relevant information so that they can make an informed decision.  This is clearly not the case for me. I am sure that if you showed the letters to your compliance department they would have a difficult time to disagree with anything I have said. I am wondering how many other policyholders have received the same misleading paperwork.

Therefore in the circumstances I request that indemnity is provided for my claim as clearly you have failed in your duties as an intermediary to provide adequate advice or compliant paperwork to me.

I await your response in due course.

No one is perfect and the job of a broker is a difficult one. On the one hand the other brokers, in this example, are attempting to save the client money, which is always welcome but they fail to ensure that the policy is adequate.

At Movo any declined claim is reviewed by the Chartered Insurance Broker and if we had identified an error we would have immediately confirmed to the client that they had a case for complaint.

In the end, this client received a settlement after making this complaint.

Knowledge is power: make sure you have it on your side.

Health Insurance or Private Medical Insurance (PMI) can be one of the most important insurance purchases which an individual or family can make. PMI can provide the convenience and security of knowing that you and your family’s medical needs are met in the shortest timeline, at the best medical facilities and seen by the most reputable and experienced physicians.

People buy health insurance for a variety of reasons and the private medical insurance market is growing in the UK. New products and health insurance companies are emerging all the time, which only add to the bewildering array of options available.
You cannot always easily compare prices using a comparison site and it pays to understand the details of the companies and policies that those prices represent. A good broker with specialist experience in this field will be able add tremendous value.

To find the best health insurance to suit your needs, you need to think about the reasons why you want PMI and what your budget might be. For example, some of the top-rated providers may not have hospitals or medical facilities near to your house or they may offer comprehensive policies that are out of your price range.

Health policies can be flexible so we recommend that you tailor the cover to your needs when getting a quote and make sure it is within your budget. Think about whether you want:

• Treatment near your home or place of work
• How important is the level of therapies or outpatient care?
• What level of cancer cover is required?