EXPLAINED: Buying insurance and buying business insurance

 1. INTRODUCTION

 2nd June 2016

This guide is about purchasing insurance for your business as an integral part of your risk management strategy. Almost all businesses buy insurance although the scope of the insurance purchased will vary dramatically depending on the nature of the business and its attitude towards or appetite for risk.

This guide outlines the purpose of insurance and details the different types of insurance policies available to businesses.

It summarises the roles of the insurance buyer, insurance broker, insurer and related service providers in the insurance buying process. Guidance is provided as to how to select your insurer or insurance broker.

2016 is a watershed year for the UK insurance industry following the passing of the Insurance Act in 2015 and the significant changes required for all insurance policies placed amended or renewed in England, Wales, Scotland and Northern Ireland after 12 August 2016. As a consequence all businesses should review their approach to buying insurance to ensure that they comply with the expectations of the new legislation.

This document provides up-to-date guidance on buying insurance for your business in the context of the new Act and is designed to replace the Airmic guide produced in 2009.

This guide is intended to be used by Airmic members starting out in their career in the profession, for those who may be new to this subject, or to share with their business colleagues in areas such as procurement, finance, human resources, IT and internal audit.

Scenario analysis, where the insurance cover is tested against identified events, is increasingly important to many buyers and this is considered in some detail in section 7.

Insurance provides critical support to businesses when suffering damage and disruption from adverse events and this guide outlines what to do – and what not to do – to make sure that your claims are paid as expected.

Insurance and insurance services are crucial elements of the risk management approach for businesses. Section 9 illustrates the value of these services at every stage of the risk process.

The glossary in the appendix explains some of the words and phrases in common use in the insurance world.

For more information contact:

 

Richard Codd
Senior Business Development Manager
Mactavish

Email: richardcodd@mactavishgroup.com

T +44(0)208 834 1624

M +44(0)7720 825969