One of the idiosyncrasies of the Funeral Profession is that many businesses look to reflect the personal nature by means of a personalised number plate for their hearses, limousines and also on occasions, their removal vehicle. It’s important to remember to let your Insurance Brokers know of the change and we do appreciate it’s not always the first thing that springs to mind.
Unfortunately, we have seen a number of our clients and SAIF members advise us that they have received letters from the DVLA that a specific vehicle is not noted on their MIFD database. It’s easily rectified but vital that we have this information at the time otherwise they do have the right to impose fines that will prove to be punitive.
Please do either call us to advise of the changes or email them to us.
It’s important to always remember that the insurance policy you have is a legal contract and that it’s written by the Insurer. Inevitably, its written to most favour them and one of the aspects that is least liked is “hidden away” within the policy wording and called the Average Clause.
This Clause is designed to ensure that the sums insured are an accurate reflection of the true values at risk. This is fine when the sums are adequate BUT, the problems really occur when this sum is not sufficient. Not only will you not receive the total amount lost BUT you will also then be penalised by the % of under insurance. For example:
A funeral director insuring for £20,000 Contents suffers a total loss and the Insurers/Loss Adjusters state that the true reinstatement value should have been £40,000.
The amount paid out (excluding excess) would be £10,000 (50% of the sum insured as the insured amount was 50% of what it should have been)
The effect is that the Insured now need to find £30,000 to reinstate fully.
When you calculate the replacement value of say, your Business Contents, it’s important that this is looked at each year to ensure that the sums reflect any acquisitions made during the year.
If there are any questions, please contact us by email or telephone on 07740 577651.