Frequently Asked Questions
Do I need business insurance?Chris
While employers’ liability cover is the only type of legally required business insurance, some business regulators may also want you to have certain policies in place before they let you practice. For example, you might have to take out professional indemnity insurance if you’re a solicitor or an accountant.
If you work with other companies or clients, they may also request that you’ve taken a particular level of cover before signing a contract with you.
Do I need Protected No Claims Bonus on my insurance policy?Chris
For an extra premium, you can protect against losing your no claims bonus. This is usually available to policyholders with four or more years’ no claims bonus, who have proved they have a good driving record. This usually allows you to make two fault claims in a three to five year period without reducing your no claims bonus.
How are car insurance premiums calculated by insurers?Chris
Your car insurance premium is calculated by determining various factors which include the type of car, where it’s kept, who drives it, what it’s used for and what cover you require.
As a general rule of thumb, smaller engine cars are cheaper to insure than larger engine cars, and prestige cars are more expensive as the parts to repair will cost more.
The older the car, the more discount it attracts for comprehensive insurance.
Car theft is higher in urban areas and consequently means your insurance premiums will be higher than for somebody living in a more rural area. The postcode where the car is kept is a rating factor so if it is not kept at your address you need to advise us.
How much will travel insurance cost?Chris
The premiums you’ll pay for travel insurance depend on a number of factors, including:
- Your age: younger travellers get cheaper insurance premiums than their older counterparts
- Your destination: Factors specific to your destination, such as local medical treatment or repatriation costs, can affect the price you pay
- Your holiday duration: As you would expect, the longer you’re away the more you’ll need to pay
- Your activities: If you’re taking part in risky activities like winter or water sports, you’ll need to pay extra for the right cover
- Your medical conditions: If you have any pre-existing medical conditions, as discussed in the next question, you’ll need to pay extra for the right medical treatment cover
- Your policies: Adding extra cover for gadget, designer clothes or valuables does bolster your protection, but it will cost more
Your premiums are a one-off payment for the entire policy, rather than a price-per-person for everyone covered.
I have Business Interruption insurance, am I covered?Chris
The vast majority of organisations do not have cover for coronavirus under their Business Interruption insurance. Not all insurance policies are drafted clearly, and the best way for us to confirm whether you are covered or not is to contact us. Contrary to what you may read on social media or even via trusted news sources, the change in the Government’s stance to “lockdown” will have no effect on the majority of insurance policies. Some insurance policies do have an element of cover, but this is likely to be limited and is mostly the consequence of poor policy drafting rather than a specific decision to provide insurance cover.
Owing to the ongoing confusion around some of the more poorly drafted policy wordings and the interpretation of some policies by insurers who deny there is cover when this is questionable at best, the Financial Conduct Authority (FCA) has now decided to test the insurer’s arguments in court, to create a common law and transparent approach to the key arguments. We would expect this to only impact a small number of policyholders, but we welcome the FCA’s approach and hope this work will be completed urgently.
If I select a group/couple/family policy, am I or is anyone else named on the policy covered if they travel alone?Chris
Some insurance policies may cover you to travel by yourself, but most won’t. It’s always advisable to contact your insurer before travelling to clarify this sort of information.
What additional cover can I take out with travel insurance?Chris
When you take out a travel insurance policy, you’ll be able to bolster your cover with several additional options:
- Adventure, winter and water sports cover: If you’re going snowboarding, jet-skiing or swimming with dolphins you’ll need either an adventure, winter or water sports policy. They’ll cover you for a range of activities that a standard policy wouldn’t
- Cruise cover: if you’re going on a cruise this tailored policy will insure your belongings and medical costs should something happen once you set sail. You’ll also have cancellation cover in case you are unable to go on your holiday
- Gadget cover: If you have any gadgets that cost more than the single-item value limit most insurers have in place, you’ll need to cover them and any other expensive items with a policy
What does Comprehensive Insurance cover?Chris
Comprehensive Insurance usually covers:
– Liability of passengers for accidents caused by them
– Liability for injuries to other people, including passengers
– Liability for damage to other people’s property
– Liability arising from use of a caravan or trailer whilst attached to the car
– Fire damage and/or theft
– Accidental damage to your own car
– A personal accident benefit – certain amounts are paid in the event of the death or specific permanent disablement of the policyholder (and sometimes his or her spouse or family member)
– Medical expenses necessarily incurred, up to a stated limit
– Loss of or damage to personal effects in the car, up to a stated limit
What does RTA mean and how does it affect Car Insurance?Chris
RTA stands for Road Traffic Act which states that all motorists must be covered by car insurance in order to protect the driver from third party liability. It is an offence to drive your car or allow others to drive it without insurance.