Now let me tell you a story. Are you sitting comfortably?

We were approached by a Dispensing Optician to quote for their shop insurance.

The quote we provided was on a like for like basis. Using our online quote comparison facility this   revealed that on this occasion we were able to save them approximately forty five percent of the premium they were paying. This cheaper alternative was with a perfectly reputable insurer and not necessarily the cheapest available. So there was no descent into a race to the bottom of the bucket shop insurers.

Believe us when we say the cheapest are cheap for a reason.  It rarely pays in the end to deal with the lowest bidder whatever the product.

Our policy is to recommend reputable insurers who we know from experience deal with claims promptly and fairly.

The trouble with insurance is that the only time you find out about the quality of the product and insurer is when you have to make a claim, which is hopefully not that often. It is almost impossible for a layperson to evaluate quality. This is why it is so important to use a qualified and experienced insurance adviser whose experience is a daily occurrence. Always remember any defects in your insurance arrangements will reveal themselves when a loss adjustor pays you a visit.

Unfortunately evaluating the quality of the advice you get is also hard. It can vary enormously, so it is better to focus on experienced insurance advisers who are familiar with arranging insurance for Optical practices.

This is where the story gets interesting.

A question was asked of the Optician, “Are there any interested parties other than the Optical Practice, a limited company”. “Yes” was the reply.

“My husband and I own the building and the optical practice pays our separate property company rent. Oh and the flat above is rented to a tenant. That rental income is also paid to our Property Company”.

A red alert immediately sounds in the mind of an experienced insurance adviser. There were two separate legal entities whose property assets, legal liabilities and incomes were bundled together under one policy….or so they thought….

It was a property the Limited Optical Company did not own and had no legal right or responsibility to insure. So the building was not insured correctly if at all.

The rental income of the Landlords was not an income of the Optical company so that was also not insured anywhere, nor were the landlords contents in the property. This included expensive white goods in the apartments to include cookers, washing machines, dish washers, kitchen appliances and utensils, carpets and other fittings belonging to the landlords…..not the Optical Practice.

The Optical Practice shop policy covered the Public Liability of the Optical Practice and its specific business activities only.

So no Property Owners liability cover was in place protecting the Landlords against claims for injury or property damage while acting in their capacity as owners of the Property with all the duties and responsibilities that involves.

The buildings were promptly removed from the Optical Practice policy and transferred to a Property Owners policy. This included cover for loss of rental income and Property Owners Liability risks.

The story does not end here.

Upon further questioning the client revealed they were in the process of converting the flat above the shop from one apartment to three. Building Contractors were knocking about the upper floors.

The very nature of building work presents different and more hazardous risks to the property and people within or nearby. It is essential any insurer involved is informed of any building works to avoid wiping out the insurance cover entirely in one fell swoop. Building Work is a whole different ball game from how Optical Practices and homes are normally used. It is littered with the hazards and pitfalls a building site poses.

The contractors themselves must have at least Public and Employers liability insurance covering them and any person they bring on to site. This must cover them for the activities for which they were engaged. For example a person insured as a Joiner is not insured to do brickwork, plastering, plumbing or electrical work.

If any supporting structures are to be weakened or removed you should consider separate cover for this risk which does not need to determine who is to blame should the building become unstable or even collapse.

Consideration must be given to who owns and insures the Contract Works such as new kitchens, bathrooms both in the process of being fitted and after being fitted until Practical Completion (handover to the Landlord).

General builders sometimes carry Contractors All Risks insurance which would cover the works they carry out and materials or goods for which they are responsible.

This may not cover the works or goods of other Trades people, nor property or goods on site belonging to the Property Owner.

So top tips in summary;

-        Shop around for the best shop insurance, no one insurer is the best place for everyone in all areas of the country

-        Choose a reputable competitive insurer. Cheapest often proves to be the most expensive by a much bigger margin if you have to make a claim

-        Use an Insurance adviser suitably expert in the insurance markets and particular insurance aspects of your Profession

-        Identify separate legal entities and activities and insure their property, income and legal liabilities separately and properly

-        If building work is being carried out make sure your existing insurers are informed in writing

-        Check Building Contractors Liability insurances and make sure they are insured for the work they do on your site

-        If it is possible supporting structures may be weakened or removed separate non negligent liability insurance must be considered

-        Think about cover for the Works and any Goods and Materials being brought to site for installation

We have heard of horror stories where business and property owners have lost everything they own and what is worse become involved in costly legal disputes, just for the sake of getting expert advice and asking a few pertinent questions making a few phone calls and properly arranging insurance covers.

Infocus Opticians Insurance have many years’ experience dealing with all aspects of Opticians Insurance.

When you consider our expert advice is free, why not take it. We could be instrumental in saving your business as well as your annual insurance premium costs.

Give us a call on 0161 925 5051

Written by: admin