Why like-for-like quotes could leave your business wide open

It’s our business to understand your business. Why? Because your industry doesn’t remain static, and so neither should your insurance cover.

Let’s look at the construction industry as an example. Since 2020, material costs have soared. While we can all appreciate the headaches this has caused with suppliers and customers, there’s another reason to be concerned.

Your insurance will cover the value of the materials you have in stock. Whether it’s timber, bricks, or steel, your insurance will protect your business from financial losses in the event those goods are damaged or stolen.

However, if the value of the materials you have in stock is double what it was the previous year, and you reinsure on a like-for-like basis, your stock could be underinsured by 50%. And insurers don’t usually pay out if a business is underinsured.

Why we don’t believe in like-for-like insurance quotes

Like-for-like quoting is a common industry practice that involves adjusting old insurance policies to account for obvious changes such as payroll, turnover, and asset values.

The problem is, your old cover can very quickly become misaligned to your current needs, meaning you’re actually adding to your risk rather than managing it effectively.

To look at it another way, would you consciously choose to insure only 50% of your stock? Would you be happy to pay for an insurance policy that leaves you uninsured?

Not just a supplier, but a trusted advisor

This is why we are so committed to understanding your business and the full extent of your risk exposure as it currently stands. This attention to detail allows us to offer the most appropriate cover to fully protect your business at an affordable price.

Rather than simply reissuing a bill for next year’s premium, our account managers personally manage our clients’ policies throughout the year.

Typically, we’ll see and review our clients’ insurance needs four times per annum and make mid-term adjustments where needed for our policyholders.

Often, this results in our clients saving money or seeing their cover work harder for them, which can be particularly evident for clients with seasonal businesses.

BJP’s Stephen Hegarty explains, “We pride ourselves on the standard of service offered at BJP, which not only provides real benefits to our clients, but sets us apart from our competitors.

“Our personalised approach facilitates long-term relationships with our clients, which is the reason we’re proud to use the phrase, ‘not just a supplier, but a trusted advisor’.”

Contact us today to make sure your business is fully protected.