The F Word and Insurance

The F word in this case is Fraud and Insurance Fraud means that the average premium paid by policyholders is increased by £40 per year, according to a recent report.

With 1 in 11 claims reported to be in some way fraudulent, false claims are costing the insurance industry £4 million a day. And with 11% of adults (or around 5 million people) having committed insurance fraud in the past 12 months, fraud is on the increase according to the Association of British Insurers (ABI).

So who are these 5 million people?

And what can be done to stop them taking money indirectly out of our bank accounts?

Well if you’re a male, aged under 45 and are paying under £500 a year for your insurance whilst living in rented accommodation in the North of England then maybe it’s you as based on the average, the report says that:

- People over 45 are less likely to commit insurance fraud

- If you pay over £500 for your insurance you are 50% less likely to commit insurance fraud

- Homeowners are less likely to commit insurance fraud

- Males are 1.6 times more likely to commit insurance fraud

- If you live in the North of England you are 1.7 time more likely to commit insurance fraud

- If you have unsecured debt over £1,000 you are twice as likely to commit insurance fraud

- If you have a household income of less than £10,000 a year you are 2.6 times more likely to commit insurance fraud


Of the 7,000 people questioned in the ABI survey, 85% of the fraudulent claims involved the exaggeration of the value of a genuine loss with 15% of claims relating to a totally made up loss.

“Insurance fraud means that honest people and businesses throughout the UK are being punished through no fault of their own”, said Mark Burdett, the Marketing Manager for The UK’s Business Insurance Brokers, Northern Counties.

“The cost of insurance fraud is on the increase and I believe the government should be doing more to discourage fraudulent behaviour. Tougher penalties in the form of criminal prosecutions as well as highlighting the seriousness of insurance fraud could both help reduce the number of fraudulent claims and ultimately reduce what we all pay for insurance.”

Business Insurance – Top 10 Tips to getting the right Insurance for your Business

1. Be honest. It may sound the most obvious statement but forgotten or inaccurate information could affect your insurance at a later date. Your motto should be, if in doubt, disclose it. Whether you’ve had a small bump in a supermarket car park or have made a claim against your liability insurance - tell your insurance broker or company up front or when it happens


2. Use an insurance broker if you can’t spare the time to phone or shop around yourself. An insurance broker will search a large number of leading insurers for you so you could save money as well as time. When deciding which insurance broker to use things to look for are:

- Are they well established?

- Do they have facilities with the leading insurance companies?

- Are their staff experienced and do they understand your industry?


3. Choose your insurance provider carefully. A recent survey conducted by Holden Pearmain, the market research company, showed that 63% of small and medium sized businesses (SME’s) preferred using a local supplier when it came to choosing their insurance provider. And 42% surveyed felt using an insurance broker was the best way to get the best deal. When choosing your insurance provider look for a company that understands your needs and has facilities with leading insurance companies to ensure you get the right cover, at the right price.


4. Make sure you are covered correctly. Insurance can be confusing so if you are unsure of anything, ask your broker or insurance company before taking out a policy. They are the experts so take advantage of their knowledge.


5. Increase your excess. If you’re looking to reduce your premium without sacrificing cover, you could opt for an additional voluntary excess on top of your compulsory excess. By increasing your excess you could reduce your premium.


6. Make sure your premises are secure. Many insurers will only offer cover on certain premises if they are fitted with a certain level of security. Find out the exact type of security your premises has as this could reduce your premium.


7. Consider putting all your insurance policies with the same insurance broker or company. Not only will this make your administration far easier, but you may also qualify for discounts for having more than one policy with them. Certain insurance brokers and companies also offer discounts for recommending them to your friends and family. If in doubt, ask.

8. The cheapest isn’t always the best. As insurance isn’t a “sexy” purchase, many businesses opt for the cheapest is best option. Don’t always assume this is the case. Make sure the policy you buy gives you the level of cover you require. Don’t leave it until you make a claim to find out if the policy meets your needs. Make a list of what you need from an insurance policy and make sure the policy you buy includes it.


9. Don’t forget the additional cover. When buying insurance for your business, remember that there are several types of additional cover that maybe offered to you. Whilst not all of these will be necessary, there are certain types of cover that maybe of real benefit to you. Some examples of these include:

- Legal Protection

- Personal Accident

- Directors & Officers Liability

- Public & Employers Liability

- Business Travel

- Key Person Insurance


10. Don’t worry. Buying insurance for your business can be a minefield with so many insurance providers and insurance policies available. However, there is no need to worry as providing you choose the right insurance provider, they should have the experience and expertise to guide you through your options and make sure you get the best deal.


For further information on Business Insurance visit http://www.northerncounties.com/ where you can now get instant online insurance quotes for all types of Commercial Insurance.

Northern Counties – The UK's Business Insurance, Nursery Insurance, Care Home Insurance, Motor Trade Insurance and Liability Insurance Broker.

Landlord Insurance - Top Tips for Property Owners

If you are a landlord or property owner you will no doubt face many challenges when it comes to letting your property or properties. From finding the right tenants (or letting agency) to dealing with tenants queries and a multitude of other issues your time is often at a premium.

Here are some tips for landlords along with some answers that many property owners ask on a regular basis about how best you can make sure your properties are protected.

What can I do to protect my property?

Insurance is available so that in the event of a loss (by an insured event) you will be protected and covered. In order to reduce the chances of a loss you can however take certain steps to help. These include:

- Make your property more secure by installing deadlocks on doors and locks on the windows.

- Install an alarm system. Many insurers will offer a lower premium because you have lowered the risk of loss through theft. For certain postal areas a minimum level of security will be required.

- Remove potential fire hazards from around the outside of the house as well as inside - particularly around the kitchen.

- Make sure you have working smoke detectors and a suitable fire extinguisher. Put the extinguisher somewhere handy and make sure members of your household know how to use it.

What should I insure my contents for?

As a landlord, it's quite possible that the property that you are letting contains contents that you own. It is important to note these contents and ensure that you have provided adequate cover for them in your insurance policy. It might be worth doing a room by room inventory and working exactly what level of cover you require. Again though if you are in any doubt, just ask.


How can landlords minimize financial losses related to repairs and maintenance?

You can avoid many problems by maintaining the property in excellent condition.

Here's how:

- Use a written checklist to inspect the premises and fix any problems before new tenants move in.

- Encourage tenants to immediately report safety or security problems such as plumbing, heating, broken doors or steps - whether in the tenant's unit or in common areas such as hallways and garages.

- Keep a written log of all tenant complaints and repair requests with details as to how and when problems were fixed.

- Handle urgent repairs as soon as possible - take care of any safety issues within 24 hours. Keep tenants informed as to when and how the repairs will be made.

- Twice a year, give tenants a checklist on which to report potential safety hazards or maintenance problems that might have been overlooked. Use the same checklist to personally inspect all rental units once a year.

Also, your commitment to repair and maintenance procedures should be clearly set out in the lease or rental agreement.

Owning a property or a portfolio of properties can be very rewarding so follow these simple tips and make sure you and your properties are protected at all times.

For further information on Landlords Insurance or tips on being a landlord or property owner visit Landlord Insurance or www.northerncounties.com/landlord-insurance.php