ASK THE EXPERTS

RITCHIE SHERRET OF HENDRICKS INSURANCE

ARE MY INSURANCE POLICIES SUFFICIENT?

ANSWER: Let’s be honest, insurance is boring. There is nothing interesting or fun about paying insurance premiums, what else in life do you pay for and see no immediate tangible benefit?

Boring as it may be, most of us need some form of cover. Whether it be for our cars or home, we pay premiums on a promise that if something goes wrong, the insurer will play ball and pay the claim. However, sometimes they don’t and when they don’t it will be because of something that is so boring nobody reads it – the small print.

To prevent you from being bored further, the following is aimed at those who have larger risks, assets and businesses, those who are paying a lot. Larger risks require more nuanced policies and thus more small print. If you are one of these individuals or businesses, you should employ the services of an insurance broker like Hendricks to manage the boring stuff for you.

The more complex the risk, the more complex the insurance policy and so more clauses, warranties and conditions are embedded in these policy wordings, usually stretching to pages. Be honest, how many of you read these and fully understand the implications of being non-compliant? It’s the same with online big tech soaking up your personal data, you tick ‘agree’ and proceed, because what harm can come from agreeing? Well, insurance is different because not being aware of what you have agreed to can have pretty dire consequences. If you are paying significant sums on your insurance premiums, then you need a good broker. The 2015 Insurance Act switched more of the onus from the insurer to the policyholder to disclose all material information.

In conclusion, yes insurance is boring, but it is also hugely important. The basic insurance principle is intact, the premiums of the many pay the claims of the few – so just make sure you either read and understand all the boring stuff, or better still pay someone else to do it for you. As one of the unlucky few, it could save you a fortune.