Case Studies

Case Study 1

Eye Testing Equipment and Furniture undervalued for insurance purposes

Optician buys existing practice from a retiring Optician. Eye testing equipment is functional but second hand and correctly written down in books for Accountancy and Tax purposes.

Insured amount for equipment at purchase date was £5,000. After conducting a review using our Opticians Inventory (link required to our pdf), the purchasing Optician discovered that the correct value for insurance purposes (replacement cost) was £20,000, or put another way 75% underinsured. The sum insured was corrected and underinsurance avoided.

Had a claim occurred it would have been reduced by the same underinsurance percentage i.e. a claim value of £5,000 would have been reduced to £1,250.

Case Study 2

Landlords do not insure Opticians improvements to shop premises nor Shop Fronts and Signs

Confusion often reigns when trying to separate and identify what a Landlord and their Building insurers covers.

Landlords building insurers cover the structure and Landlord owned building fixtures and fittings.

Where tenant Opticians make improvements to the buildings such as Partition rooms, false ceilings, Tiled floors they need to insure these as ‘Tenants Improvements to buildings’.

Shop Fronts are normally the responsibility of the Shop Tenant along with any Signage in accordance with usual Lease obligations.

Case Study 3

Optician injured whilst decorating

An Optician fell off ladders while decorating his home breaking an ankle and wrist. He had bought ‘Locum’ insurance and was able to defray the cost of having to employ a Locum whilst unable to work.