Towergate MIA offers good advice - Check your Sums Insured
properly
Practical advice on the importance of reviewing your Sums
Insured.
Towergate are specialists in the medical, dental and caring
markets - what difference does that make to their customers?
Our staff talk to medical, dental and caring professionals all
day, every day. They are familiar with their needs and discuss
insurance in practical terms they understand.
We have dedicated customer service teams with responsibility for
individual customers. So, over time we get to know many of them
very well indeed; customers like that.
Towergate offers a proactive service
Keeping your details updated is very valuable advice. For
instance, at renewal time we speak to customers to update their
details and take account of any changes that have occurred since
their last review - like purchases of new equipment. That way we
minimise the gaps that could create problems during a claim.
What is the possible impact on a business that doesn’t review
their Sums Insured properly?
Fortunately the majority of claims handled by MIA are
straightforward: medium to low value cases like property damage
caused by escapes of water, minor thefts and glass breakages, which
cause disruption - but won't seriously hurt the business.
However, if your Sums Insured cover isn't adequate for your
needs and you make a substantial claim, you could get a nasty
surprise. Without proper advice, your business may not be protected
or ready to survive a major loss through a fire or flood.
What advice do you have for customers who may be
concerned?
Average example:
Insurance Policy |
| Actual Property Value |
£100,000 |
| Sums Insured value |
£50,000 |
| Under insurance |
50% |
| Fire Claim |
| Claim |
£100,000 |
| Sums Insured Value |
£50,000 |
| Under insurance |
50% |
| Claim settlement @ 50% of maximum Sums Insured |
£25,000 |
| Shortfall |
£75,000 |
Many customers may be unaware how the insurance principle of
'average' works and how it affects the value of a future claim. To
illustrate the potential risk, take a practice which is insured for
£50k. The property is actually worth £100k, so the practice is 50%
under-insured.
The practice subsequently suffers a total loss in a fire and
claims for £100k to reinstate the business. Their insurance company
would only be able to pay 50% of the £50k Sums Insured. The
business would be left to find the extra £75k itself.
This is the type of costly mistake that Towergate MIA helps
customers avoid through our approach to customer service and risk
management. The best thing customers can do is make sure they
address the issue now - don't leave it to do tomorrow. We’re happy
to help anyone who needs advice.