Insurance Archives - Small Business Insider

Beginners guide to health insurance

Posted on June 24, 2020 Written by Administrator

According to an article published by the Commonwealth Fund on the 5^th of June 2020, just over 10% of the UK’s population has private health insurance – accounting for around 3.3% of total health expenditure. Currently, some 4 million insurance policies are written.

Given the existence of the amazing National Health Service (NHS), which is free for all to use at the point of service, why is there such an interest in health insurance?

Why buy health insurance?

There are many reasons why people choose to buy private health insurance as a supplement to their continued use of the NHS, and these include:

the avoidance of those queues you are likely to face with the NHS – getting you access to referrals and treatment as and when you need it;

access to your own private room – with enhanced standards, such as ensuite facilities – whenever you need to stay in hospital;

your choice of some of the leading specialists and consultants in the country; and

receiving treatments, procedures and drugs which might not otherwise be available through the NHS.

How health insurance works

Health insurance typically gives you access to different levels of private consultation, hospitals, treatments, and procedures.

The Money Advice Service points out that practically any kind of health insurance is likely to give you some level of private inpatient diagnosis and treatment – including consultations with the specialists of your choice and the procedures they offer.

Cheaper healthcare policies may be quite limited in the range of private hospitals available, or they might restrict you to inpatient treatment in the private wards of NHS hospitals.

Alternatively, you may find that the cost of particular health insurance plans is kept low by limiting your access to private healthcare only if NHS waiting lists are beyond a maximum acceptable duration.

The more you pay, the wider your choice of private hospitals (giving you higher standards of nursing care and accommodation, for example, or those which might be closer to home). More expensive medical insurance policies typically give you more options about how, when and where you choose to be treated.

Bear in mind that some medical issues will not be covered

Whatever type or level of health insurance you choose, remember that there will be some medical issues which are generally not covered.

These exclusions typically include:

treatment in accident and emergency (A&E);

consultations, care, and deliveries involving normal pregnancy and childbirth;

organ transplants;

pre-existing, chronic illnesses – which will have been declared in your application for health insurance and which typically do not respond well, or at all, to treatment (conditions such as diabetes, asthma, kidney dialysis and epilepsy.

Note that if you buy a cheaper health insurance policy, you may find that treatment for other issues – such as mental health or sports injuries – are also excluded.

The two types of health insurance

If you are thinking of arranging health insurance, you will encounter two different terms relating to how your policy works:

Moratorium underwriting

this is, perhaps, the most common type of health insurance policy, which requires you to provide a relatively limited statement of any pre-existing medical conditions and your current state of health;

any pre-existing conditions you declare, however, are then likely to be excluded from cover for a certain length of time – the moratorium period (that is often two years, but the period can vary from one insurer to another); and

Full medical underwriting

this type of policy is usually more comprehensive in the cover offered – so, tends to be more expensive;

you need to provide a more detailed medical declaration about any pre-existing medical conditions and your current state of health – and your GP may also be consulted about these.

The type of health insurance you choose depends on the cover you need, the level of private healthcare you want, and how much you are prepared to pay for it.

The good news is that healthcare insurance is not as expensive as you may think. And with so many levels of cover available – and options to include spouses and children for an additional fee – you should be able to choose one that suits your budget.

73% of freelancers feel more secure with insurance in place

Posted on February 19, 2020 Written by Administrator

Insurtech pioneers Dinghy – the creators of the world’s first on-demand insurance cover for freelancers – have just announced the results of a wide-ranging freelancer survey which discovered, among other things, that having insurance in place greatly increased how secure freelancers felt in their jobs. A whopping 73% of freelancers said that having insurance cover gave them a greater peace of mind when going about their work.

On a similar note, 5% of freelancers have, at one time or another, experienced the theft of a laptop or other important work item. 9% of that group had to fork out over £2,000 to replace the item lost. If only they had insurance cover which protected their valuable equipment in the first place…

The survey – sent out to thousands of the UK’s most prominent freelancers and self-employed workers – covered a wide array of areas related to all aspects of freelance life. ‘Freelancing in 2020: State of the Industry’ – the results of which are discussed in detail here – uncovered a number of other interesting findings too.

Finance and Flexibility

Nearly 1 in 3 freelancers, for example, have not received payment for the work they’ve done at some point in their careers. Of that 30%, well over a third had simply been ‘ghosted’ by their client once the work had been submitted. It’s a truly remarkable statistic in this day and age, and goes to show that recent calls for stronger and firmer legislation when it comes to late or non-existent payment were not misplaced.

Despite that, the overall findings painted a very positive picture. As one respondent noted, freelancing had provided them with “the life of a poet and the income of a banker” – not a bad situation to find oneself in. Indeed, 91% of freelancers found the move to freelancing had had a positive impact on their quality of life.

Almost half of all freelancers stated that the single greatest thing about freelancing was the flexibility it encouraged – the ability to work when you want, where you want, and with whoever you want being a huge bonus. Ultimately, it seems, freedom is what many of us aspire to most. As one freelancer said, their move to freelancing had allowed them to “become the master of my destiny” – something, we’re sure, all of us strive for.

Security and Success

From career security to future aspirations to preferred methods of procrastination, ‘Freelancing in 2020: State of the Industry’ applied a broad brush to the freelance lifestyle, and the resultant image was one to savour.

Ross Pounds, Head of Content at Dinghy, was delighted with the response: “Too often companies are fixated on their bottom line at the expense of what really matters to the customers they serve. We wanted to get a better picture of freelance life so that we have a better idea of where exactly the industry is heading next.

From their worries and foibles to the thing that gets them up in the morning (or at lunchtime, in the case of one respondent), our survey gave us a great picture of what it is that makes the freelance community tick.”

Julian New, Dinghy’s Marketing Manager, echoed that sentiment: “It was a privilege to get inside the minds of the UK’s freelance masses. Freelancing is the future of work in this country, and in the world more generally, and this survey highlighted both problems that need to be fixed and the reasons why so many workers are gravitating towards freelancing in the first place. We’re already looking forward to our follow-up in 2021.”

The importance of trace and access cover

Posted on November 5, 2019 Written by Administrator

Property insurance provides essential protection against a host of risks – whether you are the owner of your own home, a buy to let landlord or an investor in commercial property.

Consider the loss and damage that might be caused, for example, by:

an escape of water which floods one or more floors of your insured property;

a fire – or the risk of fire – caused by electrical cables that are shorting; or

a potential explosion from faulty or leaking gas supply pipelines.

What your property insurance covers

You are probably resting confident that your home, buy to let or commercial property insurance makes provision for the loss or damage caused by an escape of water, fire, or explosion – and if these risks are covered in your policy, you are indeed entitled to suitable compensation from your insurer.

By no means all property insurance policies, however, offer cover for the potentially considerable expense of identifying, tracing, accessing and repairing the source of the problem responsible for the escape of water, or risk of fire or explosion.

Unless your insurance makes specific reference to trace and access cover, it has been found that your insurer bears no responsibility for providing cover for the expense of tracing, exposing and repairing the problem – costs which may prove considerable if floorboards need to be lifted, floors dug out, plasterwork removed, or holes knocked in walls.

If you don’t have trace and access cover, and you make a successful insurance claim, only the costs for repairing the damage caused by the problem will typically be covered (less any policy excess).

Where can you buy trace and access insurance?

Trace and access cover is not provided by any standalone insurance but may be incorporated into your overall property insurance policy.

It may be included as standard, but only certain property insurance specialists and providers offer trace and access cover as a standard feature of any property insurance they arrange.

The cover ensures that you are not only protected against the loss and damage caused by incidents involving the escape of water, fire or explosion, but also the expense of identifying, tracing, accessing and repairing the root of the problem, fault or failure.

Some property insurance policies may also provide trace and access cover for sourcing problems with underground services, such as pipework for gas, water and sewerage – pipework which you are responsible for.

Just as with other headings of your property insurance, if you make a claim under the provisions of your trace and access cover, you may expect to pay an excess – and the amount of that access is likely to vary from one heading of cover to another.

Next steps

It is not always immediately apparent whether your property insurance includes trace and access cover – some policies do, but many do not.

To ensure that you are not left footing the bill and personally responsible for the cost of identifying, tracing, accessing and fixing problems responsible for loss and damage such as that caused by an escape of water or gas, for example, it is worth carefully checking your property insurance policy for the definition of trace and access insurance and specific reference to its inclusion.

If you remain in any doubt as to whether trace and access cover is incorporated into your policy, you might want to consult a specialist property insurance provider who arranges this aspect of cover as standard.

Insurance for freelancers FAQs

Posted on October 21, 2019 Written by Administrator

Freelancing is probably one of the fastest-growing sectors of the UK economy says the Association of Independent Professionals and the Self-Employed (IPSE).

As the ranks of these freelancers are swelling, their need for appropriate insurance is thrown into the spotlight so, here are some of the most frequently asked questions about insurance for freelancers.

I’m a freelancer, why do I need insurance?

What is likely to have drawn you to your role as a freelancer is the freedom, independence, and potential rewards of the job. But these may also be the biggest drawback – if something goes wrong, your freedom and independence mean that you alone are left carrying the can.

Freelancer insurance is designed to help compensate you for the losses incurred as a result – and, so, protect the income you have worked so hard to achieve.

What can go wrong – what are my risks as a freelancer?

There are three principal risks you face as a freelancer – and the financial losses they may entail have to be met from your own pocket in the absence of the appropriate form of insurance:

professional indemnity;

public liability;

theft, loss or damage of the equipment you use as a freelancer.

What is professional indemnity insurance?

When you offer your services as a freelancer, your clients are entitled to a level of knowledge and competence on your part that is commensurate with your background, qualifications and experience.

If the service you deliver falls short of those reasonable expectations, if you make an error of judgment or a simple mistake, your client may sue you for professional negligence and claim compensation for any losses he or she has suffered as a result.

Depending on the losses sustained by your client, those claims may run into thousands of pounds – seriously undermining the financial viability of your freelancing business. Professional indemnity insurance covers any such claim and the legal costs associated with it.

RPC Legal has estimated that as many as 500 different types of freelancers, professionals, and the self-employed currently buy professional indemnity insurance.

Do I also need public liability insurance?

As a freelancer, you need to worry not only about liability for work you are doing for your clients, but even members of the public.

If the actions you take – or fail to take – during you work as a freelancer results in a member of the public suffering an injury or having their property damaged, you may be sued for compensation.

Once again, the value of those claims may be significant – especially if someone is injured – so, public liability indemnity insurance is necessary to cover the potential amount of the claim and the legal costs involved.

Can I insure against the theft, loss or damage of the equipment I need for my work?

The simple answer is that yes, indeed you can.

Freelancers depend for their business on reliable and immediate contact and communication with their clients and potential clients. If you are deprived of those communications for whatever reason, you stand to lose valuable contracts and commissions.

Equipment insurance for freelancers, therefore, covers against the theft, loss or damage of your mobile phone, the computer you may use (both to communicate and on which you do your work), a tablet, printers, tools, and all manner of items used in your work.

Looking for insurance for freelancers? – Have a look at Dinghy

Types of commercial property insurance

Posted on March 25, 2019 Written by Administrator

Even against the background of uncertainties about Brexit, leading estate agents Knight Frank are enthusiastic about investing in commercial property in the UK, forecasting returns of some 7% in a market with an expected turnover of a total of £55 billion.

Since any investment also needs to be accompanied by the protection of commercial property insurance, it may be helpful to look at the various types of cover that might be involved:

Use classes

commercial property insurance – just as other property insurance – recognises the different uses to which the premises may be put;

you may be investing in the property for use by your own business or in order to lease it to tenants – the insurance recognises the essential difference in the risks to that investment;

if you are going to be occupying the building, of course, its structure and fabric needs to be safeguarded against a wide range of risks – such as fire, explosions, flooding, escape of water, impacts, vandalism and theft – and so, too, do all the contents, plant, equipment and furnishings;

as the owner of the property, you may also face claims from visitors, neighbours and members of the public who hold you responsible for injuries or property damage they may have suffered – property owners’ liability insurance provides indemnity against such claims (of up to £1 million, £5 million or even more);

if you intend to lease out the property, then the critical relationship becomes that of landlord and tenant – and your commercial property insurance needs to reflect that relationship;

while you maintain the same concern to protect the structure and fabric of the building, in the case of commercial property you lease out, your liabilities to tenants may assume a more involved and critical priority;

the landlord liability indemnity insurance incorporated in your commercial property insurance needs to resolve the potentially complicated boundaries of responsibility for ensuring that tenants, visitors, neighbours and members of the public are reasonably protected against the risk of injury or property damage;

whether you own the commercial property for use by your own business or it is leased to others, your commercial property insurance may also offer alternative accommodation or compensation for loss of rental income if it becomes temporarily unusable following a major insured incident;

Mixed-use commercial and residential property

some commercial properties are for both mixed commercial and residential use;

the most common example, of course, is the parade of shops with residential flats above;

in these instances, your commercial property insurance needs to recognise the respective uses of different parts of the property and the separate nature of the risks that go with each;

the cover also needs to distinguish between those parts of the property which are occupied by you as the owner and those for which you act as landlord, leasing either the commercial or residential parts – or both – to leaseholders or tenants;

Unoccupied property insurance

finally, remember that your commercial property insurance may be severely curtailed or even lapse altogether if the premises become empty and vacant for longer than a month or so;

to meet the unique and heightened risks associated with an empty commercial or mixed-use building, you need to consider the safeguards provided by unoccupied property insurance.

Commercial property in the UK is a buoyant and rewarding market but, just as there are many different types of property, so you may want to consult a specialist provider of commercial property insurance to ensure that you secure the appropriate type of cover – at a competitive price.

Saving money on your landlord insurance

Posted on October 13, 2018 Written by Administrator

An ever-growing complex of legislation, rules and regulations – not to mention the expense of keeping abreast of the demands these impose – makes life for the buy to let landlord increasingly difficult.

The confusion and the cost of complying with those demands is especially taxing for those 71% who might be described as “accidental” landlords, says a recent news story.

Whilst landlord insurance may not be a legal requirement – though may be obligatory as part of your buy to let mortgage contract – it is an essential safeguard in an increasingly tough environment. That makes saving money on your landlord insurance a priority.

Here are some tips and suggestions about doing just that:

Shop around

just as you would before making any important purchase, make a point of carefully shopping around;
you need to make sure that the landlord insurance you buy is tailored to your specific needs and circumstances, covers all that you require, but leaves out anything you might not, and is, of course competitively priced;

Consult the experts

since that shopping around is likely to prove more difficult than you first imagine – there are so many competing providers and packages, after all – you might want to draw on the expertise and experience of a specialist broker of landlord insurance;
a specialist broker may be well-placed not only to advise on the cover likely to satisfy your needs, but also to offer among the most competitive quotes – so, helping you save money;

Consider your market

the landlord insurance you need is likely to be influenced by your target market as far as tenancies are concerned;
some insurers, for example, do not cover the risks involved when your tenants are drawn from groups such as students, the unemployed, welfare claimants or asylum seekers;
if these are included in your potential target market, therefore, consider choosing landlord insurance providers who offer cover for any tenant group;

Avoid voids

tenants come and tenants go – during that interval between tenancies you are earning no rental income, of course, and so-called “voids” therefore need to be avoided;
prolonged voids may also have an impact on your landlord insurance, since most policies stipulate that cover becomes severely restricted, or may even lapse altogether, if your let property remains vacant for longer than a month or so;
in that event, you are likely to need further cover, in the shape of unoccupied property insurance – which, of course, involves further expense;

Excesses

like practically every other type of general insurance, your landlord insurance is likely to incorporate an excess on any claim you may need to make;
by sharing the risks with your insurer and agreeing to a higher amount of excess, you are likely to reduce the cost of your premiums – but remember that this calls for a greater personal contribution to the settlement of any claim you subsequently make;

Avoid making many small claims

since you’ve paid your landlord insurance premiums, you might be tempted to put in any small claim when something gets damaged or lost;
try to avoid doing so, since a succession of small claims is almost certain to undermine your no claims discount – making next year’s premiums that much more expensive and, potentially, reducing your chances of securing the cover you need in the future.

Landlord insurance remains an essential safeguard for any buy to let landlord – accidental or otherwise – but fortunately there remains a number of ways in which you might save money on the cost of it.

How insurers need to adapt to changing consumer attitudes and the sharing economy

Posted on July 9, 2018 Written by Administrator

With car ownership numbers falling and peer-to-peer lending becoming increasingly popular, there is little doubt that the sharing economy is only set to grow. With cars in London idle for an average of 23 hours a day, the solution is to ‘unlock’ the wealth of cars that are parked for almost the entirety of the day. Rather than increasing ownership of cars, we want to increase access. A shift in positive attitude to sharing assets and a next generation that values access over ownership means that in order to stay ahead of the curve insurance companies need to adapt to the change in consumer attitudes and how we view car ownership.

PwC has estimated the sharing economy is set to be worth £140 billion by 2025 and the rise of ‘Generation Go’ means there is a greater demand for flexibility, not only in accommodation with renting, but now also transportation.

As the only true keyless peer-to-peer car company in the UK, hiyacar enables people to earn money through renting out their cars. It is crucial that we offer a solution to protect owners’ cars in the event of a traffic accident. That is why we secured a unique, comprehensive, insurance policy with AXA that supersedes personal policies and protects our owners. In the rare event of any damage this policy will cover 100% of the costs and will not affect their current personal insurance policy.

Taking this one step further, we also recently introduced a new product called ‘Mates Rates’ which allows people to hire cars from their family and friends at a discounted rate, without jeopardising the car owner’s own insurance, which is a risk when adding friends or family to an existing insurance policy.

For drivers hiring a car, the insurance premium is calculated per individual based on age, driving history and the car chosen and is added to the hire fee which the owner can discount by up to 80% by issuing a voucher (with the remaining 20% being retained by Hiyacar as an arrangement fee. This policy delivers the most affordable prices for short term insurance on the market, with prices starting at £13 a day.

Not only does hiyacar deliver best value for money for sharing between family and friends, its keyless technology, Quickstart, ensures the sharing of a car does not take up unnecessary time for either party. Quickstart enables a hirer to unlock the car through the mobile app and therefore there is no need to meet the owner.

New technology means change in way we think about car ownership, both for consumers but also for the insurance industry. Hiyacar’s close partnership with AXA reflects that forward thinking insurers can keep up with the pace of innovation. Hiyacar and AXA can now not only enable easy sharing between communities, but also best value sharoing between friends!

How It Works:

Sign up to hiyacar and list your car in just a few clicks using the website or app
Once your car is live, create your Mates Rates discount codes as you would like them. Go to ‘My cars’ – ‘Promote’ tab
Send the code to whoever you wish, share it via email or on your social network

About the Author

Graeme Risby – CEO and Co-Founder of hiyacar

How to save money on your landlords’ insurance

Posted on July 2, 2018 Written by Administrator

Successful landlords need to master many different business management skills.

One of those is cost-containment and that in turn means some focus should be put onto the cost of landlords’ insurance.

Keep price in context

It’s going to be important to try and keep some control over the cost of your various forms of insurance cover. However, before discussing how to save money on landlord insurance, it’s important to say a word or two about balance.

It’s something of a cliché but even so, do remember that any insurance policy exists to provide you with financial protection.

If you need to call upon that for assistance in the event of a claim, you won’t care how much the policy originally cost you. What you will care about is the cover it provides!

So, don’t go shopping for landlords’ insurance based on the lowest cost. Look closely at the cover offered as well and compare the cover on a like for like basis.

Take a higher voluntary excess (if possible)

Some policies might permit you to opt for a higher voluntary excess – that’s the amount you agree to pay towards the cost of any future claims.

If they do so, the savings on your premium might be significant.

Combine your policies (if possible)

Insurance providers like to offer incentives to take more of your business. That’s normal commercial life.

What that means though is that if you’re able to offer them not only your buildings cover but also things such as your contents and perhaps other forms of your insurance, you may benefit from more attractive pricing.

Another option here relates to landlords with multiple properties. Putting them together in a package through one insurer might yield real cost savings.

Construct specific packages of cover

There’s little point in paying for insurance you don’t need.

So, if a landlords’ insurance policy automatically includes cover for contents whereas you’re letting unfurnished, you may wish to remove that element of protection from your policy. That assumes, of course, it’s something the provider can accommodate and that you’ll see a price reduction as a result.

In passing – be a little cautious on this one. Check that the buildings-only component includes cover what you think of as “fittings” but the insurer might define as “contents”.

Think about high-risk tenant categories

Some policies might cover all tenants but others might exclude, from standard cover, what the insurer regards as “high risk” tenants. That might include students, asylum seekers and housing benefit recipients etc.

If you’ve selected a policy that differentiates between tenant categories, you may wish to look for one offering “any tenant” cover if you wish to avoid extra charges or gaps in your cover.

Don’t make small claims

The biggest single cost-saving element when trying to save money on landlord insurance is likely to be your no claims discount/bonus.

It might make little sense putting that at risk by making relatively small claims. Do your sums carefully first to see just how much that claim is likely to cost you if it results in your discount being lost.

Use specialists

You may find that specialist providers of landlord cover are able to source more appropriate and therefore typically more cost-effective solutions, than what might be termed “generalist insurers”.

It’s worth making the effort to check!