We had an enquiry come in from an existing customer, who wanted us to help insure a local group, that had formed to support the local parish within the midlands. Now the local authority owned and managed the grounds in question away from the parish, and accepted the group intentions to help out, but the group needed to have their own insurance to cover their intended activities “keeping the grounds of the parish, which was managed and under control of the local authority”.
What we did?
Firstly we explained to the group that the reason the council needed you to hold your own insurances, is because of the risk (albeit quite low) was being undertaken by the group itself, and not by appointment of the local authority, so it would be best to have their own covers against their physical activities on the parish grounds. We looked at the group model, which was a “Friends Of” and secured terms from a Composite Insurer who offered terms on the public liability being sought, but also gave the group management liability as well as Professional risks too, and at a very modest cost of only £257.40 including insurance tax.
After reviewing another quote we had received from a different insurer who wanted £560 plus insurance tax, we found that the terms above, was the best value for money, and at the same time almost half the price. As the cheaper premium gave the client £1m professional risks cover, with a £1m management liability cover too with standard inclusion of entity defence up to £25,000.00. Whereas the more expensive policy, only covered public and employers liability with nothing else.
Premiums vs Cover
Needless to say the group was a lot more comfortable with the cheaper alternative, as the policy held a lot more beneficial cover levels as opposed to the other insurers who was looking to quote for the business. The group as a whole really appreciated the premium costs we secured, as the group was being completely funded by personal donations of the members.
What we did was discuss with the group the importance of risk management, and due to them agreeing to undertake simple steps to help prevent and mitigate any future potential claims, it helped us in turn secure a really competitive premium, but also with important covers that the group was not aware that they needed, so we had a great result on cost and cover at the same time.
Key to any insurance, is having good risk management, whether you are a sole trader, private company or even a charity, as long as you have the essential infrastructure in place, the insurers will work with you and you will achieve good results like the above.
As always if you are ever in doubt, use #TheBetterBroker