Operator Insurance Essentials

Do you use your vehicle for your business?  Yes. If you are driving to sites then you must advise the insurer. If you don’t advise you to use the vehicle for business, you may have a claim reduced or declined.

Best cover – Agreed value    In the event of a total loss you know exactly how much you will receive. No arguments with insurers.

Hire car after an accident (even if you are at fault).  You will require a hire vehicle whilst the car is off the road being repaired.

Traps – Look for young driver excess and avoid policies that don’t allow under 25-year-old drivers.

Are you insured for full replacement value? You may have negotiated a great price to purchase the contents, stock, machine, but in the event of a large loss you won’t have any bargaining power. You will need the full price to be covered by the insurance immediately.  If you take too long to replace the machines an opposition will take your customers.

CAUTION are you covered for machines on all sites? Do you have machines or arcade in a flood area?  Most policies only cover you at a set location and not anywhere in your region. So, if you move sites or hire machines out there may be NO cover.

So, there has been a disaster and your arcade/ machines in a venue have been destroyed by fire, storm, malicious damage.  Where will the money come to pay wages for staff, wages for yourself, usual business expenses that continue to roll in

– Phone bills.   This is the only way to insure the goodwill in your business.  Talk to your broker to understand what the definitions are for gross profit, claims preparation costs, increased costs of working.  This may include hiring a machine to fulfil your contract until your replacement machine arrives

You can protect yourself and business against claims by employees for wrongful dismissal. Incorrect disposal of waste (old machines), powered tools, machines not tagged or up to code.    Directors can be sued by a wide range of council and government departments. For breeches of “The Act” when you did not even know it exists.

In small to medium businesses we all do our best to keep up to date with requirements, but it is tough.

Insurance is about protecting your largest source of income.  How do you put milk on the table for the family? Your business is how.

The brokers role is to understand your business, why you operate in a specific way, what are your business plans, where do your products come from. If a machine is destroyed today. Can a replacement be sent to you in a weeks’ time or is it 3 months from overseas?

Do you have any contractual obligations that need to be insured?  Can you insure them? Does the contract need to be changed to ensure your personal assets are protected?

The broker works for you not an insurer. In the event of a large claim YOU require immediate action. You must speak to someone you know and understands the urgency to act in your interest.