What your insurance broker needs to know

This article is a little different. It's a Q&A with Nina, one of our splendid account executives. We play the part of a curious customer.

Listen in as she explains why it's vital your insurance broker has accurate information about your business, and what can happen if it doesn't.

Here we go.

Hello Nina. So, what sort of thing does a customer need to tell their broker? 

Hello! Your broker needs to know if any of these change: your address, your company name, how many employees you have, your bank details, your turnover or payroll, what your business does, and what your business owns.

The right bank details are particularly important. If your insurer can't collect payments, there's a danger your cover will be cancelled and you'll be left uninsured.

You don't always need to tell your broker if your turnover and payroll have changed – only if they exceed the 'maximum allowable' amount on your policy. If you're not sure what yours is, have a look at your duty of disclosure (if you have one).

And you don't need to tell your broker about every new piece of kit you buy either. Just keep an eye on your overall level of cover, and get in touch if the total value of your equipment goes over it. Make sure you keep all receipts or proof of purchase emails whenever you buy something new; if the item is stolen, you'll need these to prove you used to have them.

Be aware though that laptops, tablets, mobiles etc aren't covered by office insurance. You'll need 'portables' cover for these.

Why does keeping your broker updated matter? What happens if they're unaware of a change? 

Tell your broker something's changed and they'll tell your insurer (if it's relevant). This matters because, if your insurer doesn't have accurate details about your business, they can withdraw cover. And you don't want that.

This is especially so if what your business does differs from what's noted on your professional indemnity policy schedule. If there's a negligence claim against you, you'll want the insurer's expertise and financial clout to help fight your corner. You might not get it if they decide you're doing something outside the scope of your policy.

Ultimately, your insurer can only cover the things they know about. They don't like surprises and, not unreasonably, are perfectly within their rights to refuse claims for undisclosed things or activities.

Plus, if you don't have enough cover, your insurer's pay out can depend on how much you're underinsured by. They could pay for some of your claim or none at all. Read more about underinsurance here.

Is there anything customers need to be careful with, even if they don't need to update their details? 

Yes, their company name. We've had several freelancers who trade through a company name, but haven't included it on their policy documents.

It's OK to use your own name and not a business name, but if you do use a trading name, it should be on your policy documents too. More so if that's the name on your contracts. If there's a claim against a company name not noted on your policy, it might not be covered.

If you're changing your company name, or setting up a new business providing the same service, tell your broker. They can leave your old name on your professional indemnity policy so it's still covered.

Do you have any examples of claims affected by the insurer not having the right details? 

Yes.

A customer forgot to tell us he'd moved office. He then had a break-in, and wanted to claim on his office insurance.

When we notified the insurer, they initially refused cover. There was a clause in his policy wording about change of circumstances which, obviously, he'd accidentally breached.

We thought this was a little unfair – the new office met the same security standards as the old one. We had to fight quite hard, but the insurer eventually agreed to cover it. The customer certainly didn't enjoy the delay in paying his claim, though.

So how do customers update their information?

Get in touch with their broker. If that's us, either give us a call or drop us an email.

We don’t charge for changing policy details, by the way.

But things such as changing your level of cover, turnover, or payroll can affect how much you pay. Don't be surprised if your Direct Debit goes up or down after getting in touch with one of these.

OK that's it. Thanks a lot, Nina. Any other points before we go? 

If you’re not sure if something's important, tell your broker anyway. Better to be safe than sorry and all that. And they'll know whether or not they need to pass it on to your insurer.

Ask me about your cover by calling me direct on 0345 222 5375, or connect with me on LinkedIn.