FAQ Top 10 Questions

Q. My shop building cost £x to buy. Is that the amount I need to insure?

A. No. You need to establish what it might cost to re-build the complete property should it be totally destroyed by an insured event

Q. I have bought a business with Stock and Equipment included. Is that the amount I need to insure?

A. No. You need to establish the replacement cost value of Stock. What you paid for it may have been a ‘consideration’ amount as part of the overall deal, that is much lower than the cost to replace.
Equipment will definitely have been assessed at a ‘written down’ value. Once again it is the cost to replace that matters. What you paid for it is likely to be a lot less than it would cost to replace with new equipment.

Q. I have domiciliary equipment used to conduct home visits. Is this insured and am I insured while working away from the shop?

A. Not automatically. You should ask for ‘All Risks’ cover away from your premises to insure the domiciliary equipment and also ask for the Public and Employers Liability sections to be extended to cover ‘work away’ whilst representing your insured business. If you act independently as a Locum then you may need to be noted as a joint insured.

Q. I am the only qualified Optician working in my business. What happens if I am injured or too ill to work

A. You should consider Locum insurance for temporary illnesses or disability through injury. This is a form of Personal Accident and Sickness insurance adapted to suit the needs of businesses who need the services of Locums. Longer term or permanent injuries or sicknesses (over 12 months duration) may not be covered after the expiry of the Locum cover. Permanent Health insurance would need to be considered to cover longer term periods of disability

Q. I rent my shop and have spent a lot of money on shop fittings including false ceilings and testing rooms. Is this covered under the Landlords Buildings insurance?

A. No. You will need to insure them as either Tenants Improvements to the building or for ordinarily removable items such as displays and counters…..as Contents

Q. Who covers the Glass in the shop front and the signs. Me or the Landlord

A. You need to ensure you are covered for the Glass in the Shop Front and for any signs as part of your contents sum insured. Occasionally there are separate sections of cover specifically designed to provide this cover.

Q. My policy says my Theft cover is subject to ‘Minimum Security’ conditions. What are these?

A. Your policy document or policy schedule will define exactly what your insurer means by this. In summary it relates to the types of opening doors and grilles/shutters and windows you have at your premises and the types of locks in use to secure them as potential entry points for Burglars. If you suffer a break-in and you do not have the correctly specified locking devices you claim maybe refused. If your policy specifies that you must have an alarm you need to be sure it complies with the ‘Alarm Warranty’. This will ordinarily specify that the alarm must be annually maintained by an industry approved alarm company (i.e. NACOSS or SSAIB).
Depending on values at risk and location insurers sometimes insist that the alarm must be monitored by an approved Monitoring Company and it will specify the types of alarm activation messaging and remote monitoring devices (types of phone lines and what sort of Audio or Visual devices are to be installed).