Whilst quoting for insurance in recent months, Gauntlet has discovered various instances in which insurance claims would have been declined because the fleet was not adequately protected.
In these cases, the underinsured businesses had grown, or changed the nature of their business. The incumbent insurance brokers, rather than asking pertinent questions about the fleet and business operation, had simply renewed the policy based on the original information supplied by the client a few years earlier.
Even more alarmingly, in some instances, the brokers knew of the changes, but had not wished to break the news of a significantly higher premium to pay, in order to adequately protect the business.
Gauntlet’s motor broking team has been shocked at the findings. It operates ethically and transparently with clients at all times and is not afraid to break ‘bad news’, if that means adequately insuring a business. Where clients do pay a higher premium, to get the right level of protection in place, the Gauntlet team creates a plan of action that, if followed, will help the client significantly reduce premiums in the longer term, thanks to better risk management and improvement. Five-figure savings have resulted from this approach, for some of Gauntlet’s clients.
In one case, where the client had expected to pay a premium of £1700, Gauntlet won the business, having quoted £5000. Its professional advisers recognised severe underinsurance in terms of the freight liability of the goods in transit, which were incorrectly insured. Effectively, the £1700 expenditure was money wasted, as claims would have been refused once the insurer discovered the value of the goods being carried. The haulier’s resulting losses might have destroyed the business, if the goods could not be replaced through an insurance payout.
Gauntlet director and head of motor fleet division, Ian McCarron, says: “We are discovering an increasing number of instances of underinsurance in cases where other brokers have not examined the fleet business in-depth and have quoted on historic information, rather than current scenarios. Although clients, in these instances, are shocked at having to pay more, they recognise that a policy that is not based on the true material facts relating to the risk, is of no use whatsoever. Being underinsured is commercial suicide, particularly in a sector that is high-risk anyway and where a claim is only one driver mistake, theft, or arson attack away.
“Fleet managers need to ensure their insurance premiums are based on current situations. If not, they could suffer a rather rude awakening when they come to make a claim.”
For more information about Gauntlet haulage and fleet insurance, and the risk management services that can help reduce premiums significantly, head to www.gauntlethaulageinsurance.com or call 0113 244 8686 to chat to an adviser who can help you check on the validity of your insurance policy.