Warning Over Insurance Cut-backs
Truro (PRWEB) May 15, 2009
Businesses and homeowners in the South West are being warned against cutting back on insurance in a bid to save money or risk being left underinsured should the worst happen.
“Some savings could prove to be far more costly in the long run,” says Chris Ridgers from Cornish Mutual, who specialise in insurance for the rural community like farmers and holiday home insurance. “If you cut back on your insurance policy, when it comes to the crunch and you need to make a claim, you could run into trouble and find you’re underinsured or worse still, end up in front of an industrial tribunal.”
Some business insurance policies, such as farm insurance, can have legal requirements attached to them – for example, legal liability for damage to the property of others or injury to them, where compensation awards and legal fees run into hundreds of thousands of pounds – reducing cover here can be unwise. In the case of employers’ liability and motor third party insurances, there is compulsory insurance legislation to be taken into account.
Chris, Business Development Manager with the company which has offices in Exeter and Truro, adds: “The best advice is to check your cover and policy details carefully, get a second opinion if necessary and make sure you look at all your options. The important thing is not to leave crucial cover to lapse and make sure you have everything you need but are not underinsured – check the level of insurance purchased.”
This comes as homeowners are also being urged not to forgo home and contents insurance, following recent Government figures showing a four per cent rise in home burglaries during the last quarter of 2008.
Nick Starling, Director of General Insurance and Health at the Association of British Insurers, comments: “Many families will be looking to trim their budgets as the recession bites, but cutting back on home insurance is a false economy. Last year, insurers paid over 6,000 claims, some £7 million, every week, to burglary victims. Without insurance, becoming another crime statistic could plunge you deeper into financial trouble, from which it may take years to recover”.
Companies could legitimately save on some insurance costs by increasing their voluntary excesses for any loss or damage, reducing cover on low-value vehicles to third party, fire and theft, getting rid of flood cover where there is no likelihood of flooding and reviewing sums insured to reflect the basis of insurance, e.g. do they need to be replaced as new or current value figures and reviewing anticipated future income and margins to reassess loss of income protection.
Chris Ridgers adds: “Make sure your insurance provider is aware of your efforts in investing in health and safety or preventing accidents and losses – this could help reduce your premiums. Ask yourself what risks you are prepared to take and what do you want to transfer to an insurer. The overriding message is to find the best way of saving money without putting the future of your business on the line.”
Cornish Mutual has been providing bespoke insurance cover to the rural community across the South West for over 100 years. The firm employs 65 Members of staff and offers a variety of products ranging from buy to let property insurance to farm insurance for people and businesses across Cornwall, Devon, Somerset and Dorset.
For more information, contact:
Ryan Martinez
Deborah Clark Associates
01208 77900
07887 746569
Melissa Ward
Cornish Mutual
01872 277151
07702 673343
Notes for editors:
Founded by a group of Westcountry farmers in 1903, Cornish Mutual is the only general insurer based in the South West. Even today, the company is still owned by its Members, and remains at the heart of rural communities throughout Cornwall, Devon, Somerset and Dorset.
Although staying true to its origins in agriculture (around two thirds of Cornwall’s farmers are Members), Cornish Mutual now provides household, commercial, events and personal accident insurance to Members of all descriptions, living or working throughout the South West countryside.
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