An Advised sale is where your demands and needs are assessed by the broker who then gives advice and recommendations tailored to your personal requirements.
With a non-Advised sale, no assessment of your needs is made or recommendation given.
Information only is provided to you, leaving you to decide how you wish to proceed.
Firth & Scott only provide Advised sales. We strongly believe, for your own protection, you only purchase insurance by this method. Insurance is complex and the consequences of it going wrong can be catastrophic. Your business and livelihood are at stake.
Would you go to court without a solicitor or submit your accounts without an accountant? Why would you arrange insurance without a broker?
What advice do Firth & Scott give?
Anyone can compare prices in isolation, however like anything you purchase in life not all insurance is the same. Firth & Scott will give you advice on various insurance products, comparing their features and explaining their pros and cons. Areas we will provide assistance in are:
• Assessing your demands and needs and providing recommendations accordingly
• Advising on policy benefits and features
• Selecting the correct levels and types of cover
• Assessing your Business Interruption protection requirements
• Explaining Terms, Warranties and Conditions
• Advising on insurers credit rating security
• Help you establish what is catastrophic risk to you and what is not
• Claim assistance and mitigation
Please bear in mind that 70% of businesses that suffer a major incident either never reopen or close within 18 months (source Axa). This really does demonstrate that just having insurance is not enough, and it has to be effective for you.
Café de Lecq Limited -v- R.A. Rossborough (Insurance Brokers)
A judge awarded damages of £528,000 against a leading insurance broker.
The claim concerned a fire in a beach café caused by an overheating deep fat fryer, which resulted in the café being totally destroyed.
Their insurance policy contained a warranty that stipulated that the fryer must be fitted with a thermostat with an automatic cut-out in the event of overheating.
The fryer was not so fitted and so insurer Axa rejected the claim for breach of the warranty.
Following this, the claimant sued its broker for loss of cover by not making it aware of the requirements of the warranty and the consequences of not complying with it.
The court found in favour of the plaintiff and in his summing up stated that it was a broker’s duty to make sure their client understands the policy terms and conditions, not just simply tell them to read the policy.
Firth & Scott, as Chartered Brokers, agree with the judge on this matter and applaud the ruling.
We think this highlights two important points to anyone obtaining insurance:
• If you buy insurance through a broker they will make sure you understand it so that in the event of a claim it actually works.
• If the broker does not explain the contract to you adequately then you do have legal recourse against them. If you purchase insurance via a non-Advised sale you do not.