10 FAQ’s that may be asked when you enquire for an insurance quote

When you’re enquiring for insurance the number one rule is to always be prepared. Insurance can be very complex and complicated at times, so ADF insurance encourage you to be prepared for the typical questions that an insurance broker may ask you. This helps us deliver a quick and efficient quote with an aim to minimise and eliminate mistakes or errors.

1.  Name of your business.
It is important you provide the correct spelling and grammar of your Company and subsidiary companies that you want to insure, if not this can delay the process of quotation. Let us know whether you are a limited company and whether you abbreviate this or not (Ltd / Limited). An insurance policy is a legal document which means that the correct name must appear otherwise this could cause potential problems with claims.

 2.  The Address of your Business.
You may have more than one office or building it is important you specify your registered business/ correspondence address. We may post documentation to you. If you have the intention to insure a different building that is not your correspondence address, inform us of this. It is vital that the spelling for buildings, unit numbers and postcodes are correct at enquiry especially in respect of property based insurance. We must obtain the full address of your business premises to see if you are in a high risk area for flooding, theft etc. premiums are based on rates and those rates have the potential to change insurance premiums dramatically depending on where you are situated.

 3. What is your business description?
Provide us with the most accurate explanation for your business and the activities you are involved in. Certain activities carry a higher risk than others e.g. a roofing contractor who requires employer’s liability insurance will be a higher risk than an office worker, as they are working at a height and may fall off the roof.  It is important your business description is correct. None disclosure of information could lead to potential problems in the event of a claim causing premiums to increase or decrease later on. You could overpay or underpay for your insurance. E.g. if you a plumber but don’t disclose that you also install boilers / work with heat this will increase your premium due to the risk involved and could mean you are not viable to claim.

 4. When were you established?
If you are a new business we will need to know if you are fully trading or when you plan to start trading. Public and products liability or professional indemnity insurers, generally speaking prefer businesses with experience and a good track record, they are seen as more efficient and less likely to have claims. In some circumstances insurers may ask for CV’s from the owner(s) of new businesses to see if they have had any experience in an industry. That said many insurers are happy to quote for start-up businesses but they need to be told.

5.  Do you employ any Staff?
This question is commonly asked to see whether you require employer’s liability Insurance. Employer’s liability insurance is a legal requirement which can be added this to a series of different insurance policies. Some start-up companies may be unaware that they need this insurance if they are a Limited company. Also it is important to know if there are any contracted employees and if so do they have their own insurance e.g. in the construction industry Bone Fide subcontractors have their own insurance and work with their own materials under their own managers.

6. Which countries do you sell to?
If your enquiry involves product liability insurance it’s important for us at ADF Insurance Brokers to understand which countries you sell to due to higher risk of claims in countries such as USA and Canada, who are more litigious countries. It’s not just product liability, but also for example Kidnap and Ransom insurance. Countries like Mexico or Jamaica have a higher risk of being kidnapped.  Are the profits you make from these countries compared to the price of insurance worth insuring against?

7. What is your estimated revenue/turnover?
These figures are important to get an idea of the size of your company. It’s also very important for public and products liability because it’s part of premium calculation process adopted by underwriters. Many people over estimate their turnover or even under estimate because they assume that this is going to impact premiums, this isn’t always the case.

8. What is your Target Market?
We want to know what industry sector you trade in, to get a feel for your business. Are you in a niche market or a competitive market? Some insurers do not like to underwrite for certain businesses due to the increased risk in the market that they are in e.g.  Nuclear. Also in respect of product liability insurers want to know what is the end use of your product to calculate you potential exposure.

9. How soon do you need this policy?
Clients who already have insurance will want insurance the day after their annual insurance expires, we recommend this to ensure there is no break in cover and therefore not at risk. If you haven’t purchased a particular insurance before or are a new business we will usually ask whether you would like to purchase the insurances as soon as possible or wait for a certain date e.g. the start of an operational phase. We recommend looking for quotes 30 days in advance giving us enough time to search the market for the best quote.

10. Have You Had any Claims?
If you are an established business and you have existing insurance, we may ask you whether you’ve had any claims in the last three years. Some claims can be extensive so make sure you have these to hand. If you have had claims is there any way in which you can prevent or eliminate these incidents from happening. E.g. secure locking systems, security, safes, alarms etc. It is vitally important to disclose all material facts otherwise this may lead to problems relating to claims in the future.

We ask these extensive questions in order to understand who you are and what you do as a business. We use your answers to your advantage by giving you competitive quotes from the honest feedback you provide. Be prepared and be insured, today. If you are looking to get a quote please click on the insurance review on the right or contact us  .
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