Business insurance recommendations

[TBLZ]

We are a small IT services company, and have been insured by Hiscox for several years.

We've recently had two laptops belonging to a client lost in transit by Hermes, and so we thought we would unfortunately have to make a claim on our insurance, the first one in the 19 years we have been in business. Hiscox let us down spectacularly.

I have contacted DAS, who provide legal advice through our Hiscox insurance, and they said they could not help as laptops are excluded from compensation by Hermes’s terms and conditions (even though we took Hermes's insurance for the packages) which I failed to read. Yes, I know, really stupid. But that's not why I'm here today.

I have received unhelpful, self-contradictory, and at times patronising emails from Hiscox. What I found particularly cringeworthy was the way that Hiscox kept using the phrase "you chose" not to take office contents insurance, etc. I know it's a turn of phrase, but the only thing I am actually choosing right now is my next insurer.

I do understand that Hiscox also provide office contents insurance and goods in transit insurance, which I wasn’t aware of before, and would be happy to take in the future, but I feel badly let down by Hiscox, so I am looking to purchase our next insurance elsewhere. We need employer's liability, public liability, professional indemnity, legal advice, and of course I am adding contents and goods in transit insurance now.

I am looking for recommendations from people who have actually had to make a claim, as testimonies such as "they're ever so nice on the phone" mean nothing if the insurance company can wriggle their way out of compensating their clients when something goes wrong.

Any advice?

 

[brianabbott]

Unfortunately, I can't help you on claims experience, however, bear the following in mind. I recently searched for professional indemnity insurance. I went to Money Supermarket first, I'm sure you're familiar with it. I got a quote from the recommended insurer that came up in my search. The quote was £872 for the year.

I then obtained a quote from Direct Line (which isn't on the comparison sites). For the same amount of cover I was quoted £119 for the year. An important consideration when you come to make your decision.

 

[TBLZ]

Thank

Unfortunately, I can't help you on claims experience, however, bear the following in mind. I recently searched for professional indemnity insurance. I went to Money Supermarket first, I'm sure you're familiar with it. I got a quote from the recommended insurer that came up in my search. The quote was £872 for the year.

I then obtained a quote from Direct Line (which isn't on the comparison sites). For the same amount of cover I was quoted £119 for the year. An important consideration when you come to make your decision.

Thanks Brian. I did ask Direct Line before posting here, and they won't provide office contents cover for us because our office in on a "flood plain" (300m from the river Lea which is about 50cm high in the wettest winter) and they won't provide professional indemnity to us because the "failure of [our] work as an IT company would have negative financial consequences for our clients"! Maybe Direct Line are missing the point of what insurance is for.

Besides, I am not looking for cheaper than Hiscox; I am looking for more decent. An insurer who wriggles their way out and doesn't pay when something goes wrong is a good as throwing that premium money in the wind, regardless of the amount.

I do appreciate your response, though. Thank you for taking the time to write.

 

[Alison Moore]

The only company I could ever find that would insure laptops for transit is ParcelForce/Royal Mail. However I note that some of the large online suppliers use other couriers for laptops, so they must have agreed special terms with them, which I, only sending the occasional laptop, could not. I'm not sure any business insurer would cover in-transit goods though would they as surely it would be the transit company's responsibility?

 

[Darren_Ssc]

Besides, I am not looking for cheaper than Hiscox; I am looking for more decent. An insurer who wriggles their way out and doesn't pay when something goes wrong is a good as throwing that premium money in the wind, regardless of the amount.

You'll find this a general thing with all insurers. In the example above, Direct Line looks cheap until you factor in they don't cover you for this and that.

However, are you better off paying another company who are more expensive but a bit vague about such things which, usually, means they aren't going to pay out anyway?

 

[TBLZ]

The only company I could ever find that would insure laptops for transit is ParcelForce/Royal Mail. However I note that some of the large online suppliers use other couriers for laptops, so they must have agreed special terms with them, which I, only sending the occasional laptop, could not. I'm not sure any business insurer would cover in-transit goods though would they as surely it would be the transit company's responsibility?

Thank you Alison, and yes, we use Parcelforce now.

You can buy specific "goods in transit" insurance, a fact I discovered only after this sorry incident. Some office contents insurance also includes some form of "goods in transit" insurance, as the Hiscox loss adjuster painfully informed me, while contradicting himself and his supervisor as to whether that would have helped with a claim, given that they could not agree on whether the laptops were legally in my care once I had handed them over to Hermes.

I was naive enough to think that when you hand over a parcel to a delivery company, it is their responsibility. The long list of exclusions below the pictograms on the Hermes website (sorry, I cannot post a link as I don't have enough posts on UKBF) makes for sobering reading. I wish I had noticed that list before.

 

[Nico Albrecht]

My advice for a business insurance would be to deal with a local insurance broker to find you the insurance and cover you need. You can spend hours online going through terms and get different prices.

At some stage we were in the same boat and went with a local insurance broker. Gave him my list of required stuff we would need and he found the right one and made sure. Price wise came in the same as what I found online but he pointed us at certain exclusion or problems with insurances.

For shipping laptops or tech stuff if it is new it should be no problem but everything that is used you will have a hard time finding someone who covers that.

We got screwed over by DHL Germany for posting a TV to the UK, lady sold us the " special insurance " for damages during transport. TV came broken, e.g a forklift went through it and they refused pointing at their TOS. Was a 6 month battle with them and ended up in goodwill from them not admitting mis selling us a wrong cover.

 

[TBLZ]

You'll find this a general thing with all insurers. In the example above, Direct Line looks cheap until you factor in they don't cover you for this and that.

However, are you better off paying another company who are more expensive but a bit vague about such things which, usually, means they aren't going to pay out anyway?

Hiscox aren't exactly cheap, and taking the vagueness outof the equation is precisely what I am trying to do by coming to this forum and gathering other people's thoughts. Thank you all for your responses!

 

[TBLZ]

Thank you Nico. I am definitely going to contact local brokers.

Sorry to hear of your experience with DHL. How can these sort of TOS be legal?!

 

[Nico Albrecht]

Sorry to hear of your experience with DHL. How can these sort of TOS be legal?!

I would think their TOS are bullet proof but our argument was since the lady advised us we should have extra coverage for the TV it was purchased. Well it ended up as goodwill payout after 6 month. Their strongest argument they had they didn't know it was a TV. Shipped in the original box TV and mentioned but came with a hole 4 inch delivered.

Our insurance broker was spot on and I told him I would only buy if he can guarantee that all my listed req. would be covered. He also pointed out to check our locks etc.. to make sure they are the min. requirement the insurance wants and a water tank in the attic space that doesn't belong to us but might be worth having water damages insured as well in case building insurance refuses to cover such damage on our office.

All in if you get an offer read the TOS and if you dont understand a point ask your insurance broker to explain what it means in plain english. Ask him what is excluded in the cover. Let them work for you.