Navigating Insurance Claims
Making an insurance claim should be relatively straightforward, but there are things that can complicate the process. Delays in the resolution of a claim can cost a park business money. In the worst-case scenario a claim may be rejected altogether. The following top tips from Compass illustrates what park owners and managers can do to ensure that their claims experiences run as smoothly as possible. Read your policy! Different providers offer different covers and all insurers revise their policies from time to time, so it’s important to check: • policy terms, conditions, excesses, restrictions and inner sub limits • the accuracy of your Sums Insured amounts – If you’re not confident to make a valuation of your business assets, the best people to advise on re-building costs are RICS qualified quantity or building surveyors • automatic reinstatement of Sums Insured after claim. Claims service Some providers are much better than others at responding to claims, especially under emergency conditions. Consider: • reputation – ask other park owners and managers which providers they would recommend for their claims service • insurers that run a UK-based dedicated in-house claims team, manned by trained and experienced specialists • insurers that offer a 24/7/365 emergency response service • insurers with strong experience of managing worst-case (disaster) scenarios • insurers that have access to a wide network of the specialist service providers and suppliers that may be required to resolve your claim • those who employ AEs – a good insurance account executive (AE) will help in terms of claims delivery, especially in an emergency. • those that may be able to make interim/advanced claims payments for large-scale, expensive claims. Keep in touch It’s very important to let your insurer know about any changes made to your business as and when they occur to avoid under-insurance (see more information below). A good rule of thumb is to always tell your insurer what you tell your accountant. Speed and evidence The sooner you let your insurer know about a claim the better. Find out who you will need to contact, how to contact them, and any relevant timescales. The more information you can provide your insurer with in relation to a claim the better. Do what you can to help by taking photographs, gathering witness statements, recording the time, location, weather conditions, keeping damaged goods, etc. Your insurer will be able to elaborate on this basic list on a case-by-case basis. Keep up-to-date records Parks need to understand their legal responsibilities and keep evidence to show that they are adhering to them. If this evidence isn’t up-to-date and available, an insurer may be unable to defend a park business against a claim. And while we’re talking about record-keeping, ensure your insurance policy documents are kept safe and in a location where they can be accessed by relevant staff members as required. Sensible business management Sometimes it’s easier for a park’s maintenance team to manage remedial/reparation works. Keeping spares of parts and equipment that is vital to day-to-day operations, especially when these items cannot be quickly replaced, is also practical. Consider additional cover Protecting yourself, your staff and your business against claims won’t always begin and end with a commercial policy. It will sometimes be appropriate for a park to take out additional covers, e.g. Business Interruption and Directors’ & Officers’ cover. Speak to your provider for more information. Don’t under-insure! Whether deliberate or not, park owners and managers need to be aware that if they are under-insured, their insurer will not automatically pay out the full cost of a claim. Instead they may apply a calculation which reduces the claim amount by the percentage they were under-insured by. For example, if a building is insured for £200,000, but its true rebuild cost is £400,000, an insurer will be quick to identify the fact that the building was only insured at 50% of its value. This means that only 50% of a claim may be met in the event of a loss. There are any number of ways that a park could find itself under-insured. Examples include: • if you haven’t had your park’s material assets professionally valued for insurance purposes in the last three years • you are now VAT registered • you are carrying more stock now than when you took out your insurance policy • you’ve altered or extended your park premises • you haven’t factored in replacement costs for (e.g.) gates, fences, car parking areas, roads and pathways etc. • you haven’t factored in the costs of professional fees such as an architect or surveyor • you haven’t factored in costs such as site clearance or access – particularly where your business might need, for example, a crane of heavy plant to help with remedial work because of the claim. As aforementioned under-insurance can present itself mid-term. Keep your insurer up-to-date to avoid this. Beware the impact of customer claims Park businesses shoulder an element of risk when it comes to their customers’ insurance cover. The bigger a customer’s loss, the bigger the potential impact upon the park business. In the worst-case scenario, where total losses occur and multiple insurance providers are involved, a park’s operations can be severely affected. The way in which some parks try to take some control over their destiny in this regard is to become an appointed representative or introducer appointed representative of an insurer provider they trust. This allows them to respectively sell or introduce an insurance product to their customers within the parameters of financial regulation. For further support on preventing claims and to hear more about our market leading 24/7/365 Major Incident support, please contact the Compass team on 0344 274 0277.
What insurance risks do holiday park customers face in winter?
This month, Leisuredays Business Development Manager Steve Parker looks at the insurance risks faced by holiday park customers in winter. Each winter, both park owners and insurance brokers often brace themselves for stormy weather or freezing temperatures. Unfortunately holiday caravans are not as well insulated as our homes and seaside parks can bear the brunt of turbulent weather. Here at Leisuredays, our most common winter insurance claims are almost always weather-related. Storm damage was the top holiday caravan insurance claim last winter, accounting for 20 per cent of all holiday caravan claims. Other common claims were escape of water and boiler damage, often caused by frozen pipe damage, highlighting the importance of draining down static caravans or lodges from November until mid-March if they’re not in use on your park. Leisuredays policyholders are always issued advice on how to take precautions to protect their pride and joy during these colder, winter months, as well as how parks can help owners drain down and advice on lagging any exposed pipes or adjusting boilers appropriately. It’s also worth checking that owners have taken any outdoor furniture and other outside equipment inside to avoid any external damage when windy weather strikes. Plus, winter can attract unwelcome visitors, such as vermin or in some cases thieves or vandals. “We did deal with a handful of vandalism, vermin and theft claims last winter, so it pays to take steps to mitigate these risks,” said Steve. Here are a few simple things park owners can do to protect their customers before winter weather and other perils strike: • Make sure all your customers are adequately insured and dealing with a specialist and reputable insurance provider. Look for benefits such as debris removal so any badly damaged units can be removed quickly and also for experience of settling claims quickly, with prompt repairs and replacements. • Help customers drain down completely for when your park is closed or how to undertake a simple drain down when the park is open but the caravan is to be left unattended, offering as much support as possible. See our advice for customers at www.leisuredays.co.uk/winter-weather. • Make sure customers lock all doors, windows and skylights, as well as clearing their verandas and decking, and checking seams, seals and guttering. It’s also a good idea to clean their holiday caravans – inside and out – and remove any valuables, food and bedding. Existing Leisuredays parks can contact their Business Development Manager at any time for support with claims over winter as well as our award winning Claims Liaison Team. If you don’t currently work with Leisuredays and want to find out more about how they can insure your park customers contact the Leisuredays Development Team on 01422 396 772, email development@leisuredays.co.uk or visit www.leisuredays.co.uk/parkoperators.
GoldPark Holiday Caravan Insurance
The conduct of insurance activities is becoming more complex as FCA rules and regulations continue to evolve, and now GDPR has added a further layer of regulation. Whatever your chosen insurance option might be – whether it’s Appointed Representative (AR), Introducer Appointed Representative (IAR) or Passive Introducer (PI) – GoldPark have the solution. We find increasingly that the most popular solution for our park owners has become the IAR option. Some parks were reluctant to relinquish their AR status as they felt they may lose control of their scheme. However our unique on-line system provides a real-time analysis of their owners’ insurance. By referring clients to GoldPark, park owners have found that any initial loss of commission is more than made up by increased penetration, removal of park administration cost and postage costs and the fear of unintentionally breaching FCA regulations. 14 days’ free insurance with caravan sales When a park sells a caravan holiday home, GoldPark can provide 14 days’ free insurance during which period the client will be contacted by one of our trained advisors and provided with a quotation over the telephone. Switching from being an AR to becoming an IAR is easy as GoldPark provide all the back-up needed for seamless transition. GoldPark’s policies are backed by AXA and offer wide cover and competitive premiums. Our commission terms are flexible according to the differences in park involvement. GoldPark have developed a reputation for working successfully with parks and we always ensure that our offering is tailored to the specific needs of the park owner. Our trained advisors have a friendly and helpful approach and have received many compliments from park owners and individual clients. For further information contact Richard Hornsey on 01377 256135, or Alan Johnson on 07713 868080, see us at the The Lawns show. Visit GoldPark insurance at the webiste goldparkinsurance.co.uk
