High Risk Insurance: What Does It Mean?

Nathan Brown  -  Sep 29, 2020  -  Comments Off on High Risk Insurance: What Does It Mean?

We are one of only a handful of specialist brokers in the UK that specialise in cover for high-risk insurance. When placing a high-risk policy, it is extremely important to have the right cover in place as the risk of not doing this could mean exposure to significant cost should something go wrong.

But what is high-risk insurance? The clue is in the name and a high-risk environment is where there is proven to be an increased risk of a claim, or where a claim may have more significant consequences than a ‘lower-risk’ application.

Whilst we may use the phrase ‘low risk’, that is certainly not to downplay the risks associated with any environment. Whatever insurance you require, it is vital to have the right cover.

Here are a few examples of high-risk applications:

Where There Is Increased Risk Of Injury Or Death

This may be, for example, in a manufacturing environment.

Whilst the tools and machinery used has come a long way in recent years and safety standards have significantly increased, there is still an increased risk of serious injury when compared to, for example, an office-based role.

We work with our high-risk clients to provide guidance that will assist with minimising risk as this will certainly help to keep premiums as low as possible.

Where A Claim Could Lead To Significant Cost

You will certainly want to avoid claims, however a high-risk environment has the potential to a significant claim. For example, one American company had a claim of $1m in clean-up costs alone following an oil spill!

Having the right cover in this environment is extremely important as without it, you could find yourself needing to foot an eye-watering bill.

Where Liability Of £10m+ Is Required

A standard business insurance policy in the UK provides cover of up to £5m, however a high-risk application such as petrochemical insurance would generally require cover of £10m+ due to the higher potential cost of a claim.

With over 40 years’ experience, we have the skills and knowledge that you need to make sure nothing is left to chance! Drop us a call or message to discuss your policy.

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