When you receive your insurance policy documentation, it can often be quite a lengthy document and one that has a fair amount of small text squeezed onto the page. Many of us will either skim through the wording or simply sign without reading the detail.
One benefit of using a broker is that they will be familiar with the detail of the policies they recommend for you; however, it is still all too easy to explicitly trust your broker and not read your policy.
Remember that you are signing to agree the policy and not your broker, so it is important to set aside some time to read in full, so you know what you are agreeing to. Here are the main four things that we would advise you look out for when reading your policy.
- What you are covered for
This goes without saying, but your insurance policy will outline everything that you are covered for. It is important to make note of this because you will want to make sure you are covered for everything that you need to be!
In addition, you need to pay particular attention to the ‘exclusions’ section. This is the section of your policy that tells you what you are not covered for and therefore cannot make a claim against.
- Your policy limits
This is one of the most important aspects of your insurance policy as it tells you the maximum amount of money that you will be paid in the event of a claim. There are likely to be different amounts for different areas of your policy.
Your policy limits will also include any excesses that you will need to pay in the event of a claim. This is the amount that you are required to pay before your policy kicks in and begins to pay out.
- Important dates
As well as the date of expiry which goes without saying, your policy will contain some important dates such as when you should submit certain information by. Such as, for example, notification of any incidents that may give rise to a claim or notification of any claims you wish to make.
You should always ensure that you pay attention to this section and meet the conditions as insurers will not pay your claim if you do not meet them.
- Your policy needs to contain the right information
You should check that your policy contains the correct information about you and your business. If the information is found to be inaccurate (even if by accident) there is a significant risk that your policy could be voided, and you would be left with no cover.
Inaccurate information could also lead to you not being able to claim or even being required to pay a third-party claim running into many thousands of pounds.