Apples With Apples, Pears with Pears.

The insurance industry is a competitive one, with many clients, both individual and commercial, often being driven to choose a product based on price before any other factor. Having appropriate insurance is often just a necessity of doing business. You might need a particular product in order to satisfy a contract or there may be a regulatory/ legal requirement for you have a given class of insurance. We understand that it may not necessarily be something you relish having to shop for or even understand. On the other hand you may get excited about it and have policies coming out of your ears!

Is it too good to be true?

In some instances, a comparison of quotes may only offer slight differences in price. This would not immediately raise any alarms that you’re not comparing like for like and that for the sake of £50 you’d be happy to stay with the incumbent supplier. In other instances, the price differential for seemingly identical policies may be significant. The opportunity to save, at times thousands, is one that is hard to resist. But the question that always needs to be asked is ‘why is this cheaper?’

Invariably, a product will be cheaper because it’s level of cover is not comparable. As the phrase goes, apples are not being compared to apples. It seems like common sense, but many fall foul of the understandable lure of saving the money. However, in the event of a claim, it may turn out to be a false economy. But that’s the risk that we replace with reassurance.

At Macbeth, we do, from time to time, see the flip side of individuals deciding to go with the cheaper option.

A local manufacturing company (with a separate product supply company) had had a business interruption on a loss of profit basis with us for some time. At renewal, they decided to obtain some alternative quotes, and decided to take the cheaper offering, either assuming that it offered the same level of cover as the previous policy or possibly in a deliberate move to reduce costs without fully understanding the differences or full extent of the cover provided . As is the case with most insurance, you don’t need it until you need it.

So when the premises suffered a fire at one of its sites, the effect on the different sides of the business, in terms of trading, were substantially different, with the result it suffered significant loses running into hundreds of thousands and took several months to get back to normal running. They were not correctly indemnified and were grossly under insured as perhaps a result of a failure to understand the differences in gross profit, gross revenue and additional cost of working indemnities and how those differences would effect them.

The warning signs were there right at the start. If the price looks too good to be true, it probably is. They were not comparing pears with pears and were unwilling to take our advice.

Replacing your risk with our reassurance

Here at Macbeth, although we always strive to save our clients money, we don’t risk our client’s reassurance in order to be the cheapest. We always take a diligent approach and offer expert advice in order to insure the cover being offered is the cover that is required. We specialise in offering Business Combined and bespoke insurance cover. Because every business is different, off-the-shelf insurance can sometimes fall short, particularly if you work in certain sectors or have multiple sites or different business activities. With a Commercial Combined Insurance policy we can tailor the policy in order to cover all your risks ranging from physical assets to your liabilities and loss of profits etc. Our main priority is to ensure you are happy with the risks covered and that you have the peace of mind required.

We know that real value is service – and therefore our service – comes when you have a claim. We also know that, when it comes to dealing with claims, speed and efficiency are paramount.

If you’re interested in learning more about how we could help you get the right level of cover for your commercial and/or individual needs, please don’t hesitate to get in touch, either by calling a member of the team on 0118 916 5480 or using the contact form on our contact page.

Author: Ben Butler | January 23rd, 2018

Contact the author

Ben Butler
Get in touch:   Reading: 0118 916 5480   London: 020 7036 8767   info@macbeths.co.uk