Commercial Insurance cover

lily0175

Our insurance is due for renewal early April. June 14 we had a claim for a machine and business interruption which is still on going and likely to be beyond the renewal date. Do I have to remain with my existing insurer or can I change to a new provider who is fully aware of the full value of the claim.
We wish to change due to the phenomenal rise in premium (£1400 to £5800) from a company who have been utterly useless in dealing with the claim. We have received an alternative quote with full disclosure on a like for like basis for £1000 for the next year. bearing in mind we are claiming on business insurance who would be liable for the huge premium if we have to remain with the existing insurers?
These are just the bare bones - please ask if more info is needed.

BookWorm

No you don't have to remain with an Insurer because there is a current claim ongoing. Some may prefer to do that for reasons of continuity whilst it is dealt with, however, you don't have to.

As long as you declare the claim and all details to the quoting/new Insurer and they accept the position and confirm the terms they offer take the claim into account (or do not affect the terms they are offering) then you can move to whichever provider you wish.

paddyrg

Sounds like your existing insurer doesn't want your business any more, if other underwriters want it at such a low cost and they know you have a current, ongoing claim. If they did want to keep your business, they'd simply reinsure you with the other underwriters and pocket the difference

lily0175

can anyone confirm that the old insurers will continue to pay the business interruption payments if we go elsewhere?
Thank you for the responses - will likely be renewing with different insurer as of next week.

Mistral001

lily0175 wrote: »

a company who have been utterly useless in dealing with the claim. .

Most insurance company staff behave as if they the money is coming out of their own pocket, which sometimes is frustrating, however, have they paid up or have given any written confirmation that the claim is valid?

BookWorm

lily0175 wrote: »

can anyone confirm that the old insurers will continue to pay the business interruption payments if we go elsewhere?
Thank you for the responses - will likely be renewing with different insurer as of next week.

Yes the insurer will deal with all aspects of the claim until it is finalised. Business interruption can take some time depending on the nature of the incident but they will see it through until the end

lily0175

We are 9 months into business interruption with probably 4 or 5 more months (due to the insurers own ineptitude!) However payments have been erratic to say the least with no payment schedule being forthcoming. They have set the precedent by paying out and our cover is for 24 months so fingers crossed.