It’s easy to be lax with the rules or forget to tell your insurer when there’s a change in your life. Many even admit to knowing that they are invalidating their insurance. It’s time to see insurance as protection – not an unnecessary cost.
How are we invalidating our insurance policies?
Research by MoneySuperMarket has found that Brits regularly do things that void their insurance, with more than half knowingly doing so. Sometimes a change in your life might seem small, but is it really worth not telling your insurer when it might mean that you are financially out of pocket in the event of a claim?
Changing your job may affect your car insurance policy. 13% of those surveyed have changed jobs without telling their insurer, but almost half (46%) said that they knew this would invalidate their policy. Almost a third of people have let other people drive their car, with half knowing that this is an offence.
It’s not just car insurance where people are breaking the terms of their policy. People are just as lax with their home insurance.
More than a third of people asked leave windows open when going out, and a fifth even leave doors unlocked. It may be a smaller figure, but 5% even admit to starting a business at home without informing their home policy insurer when 55% know that will invalidate their policy.
What is the consequence of invalidating your policy?
If your insurance policy is not valid due to inaccurate information, a change in your circumstances, or you break the terms, it means that if you need to make a claim, your insurer has the right to refuse to pay out.
That means that if you have a car accident, or your home is burgled, for example, you will be liable for the costs that have to be paid out.
This could leave you with thousands of pounds of costs. Car insurance is also a legal requirement and therefore, it is actually an offence to have an invalid policy.
Your business insurance is as important as your personal insurance.
While this research relates to personal insurances – car and home in particular – the same consequences are relevant to business insurances. If information supplied to an insurer about your medical or dental practice, you are in danger of being underinsured, over insured or potentially, not insured at all.
The financial and logistical consequences are severe. Without Cyber liability insurance, any Cyber breach could be catastrophic – do you know what process you need to follow if your system is hacked, or can you protect your reputation if your patient data is stolen?
Without Practice insurance, what would you do in the event of revenue loss or equipment breakdown?
Make sure your insurance policy is protecting you
These are just a couple of examples of how your insurance policy protects you. There is no point purchasing insurance if you are not going to ensure it remains valid.
If you need to update your policy, or want to discuss your upcoming renewal, speak to a member of the All Med Pro team.