Insurance checklist
If you’re running a nursery or group of nurseries, you may already have an insurance policy in place to cover your business for a range of eventualities.
Whether you are reading this because you are due to renew that policy, or even if you’re looking to switch to Morton Michel from your current provider, you’ll need to be as thorough with your research as you were when you first sought cover in order to help you make an informed decision.
To help you with your decision-making process, we’ve put together a series of questions in the checklist below that you may want to consider as part of your research process:
• Does my existing policy cover all the legal entities within my business and include any subsidiaries? It is important that these businesses are named correctly.
• Does my cover match the requirements of my local authority, or other regulatory body, for Public Liability (PL) and Professional Indemnity (PI)? Click here for an explanation of the differences between PL and PI and ask your LA for guidance on their requirements.
• When was the last time I had my premises valued? You may want to consider undertaking a valuation of your premises on a regular basis to ensure your sum insured remains adequate including any associated fees such as architect and surveying costs. Click here to understand the consequences of underinsurance
• Is my contents sum insured still adequate to replace the items that are covered by the policy? The sum insured can and should be increased to reflect any recent purchase or hire agreements, which must be noted in your policy to be recognised.
• Have I made improvements to my premises that have altered the value? Any improvements to rented or leased premises will not necessarily be covered under your landlord’s property insurance. Additions such as stud walls, flooring and fixtures can, however, be covered in your policy.
• Is my revenue sum insured correctly listed? To avoid the problem of underinsurance, you are responsible for ensuring that the revenue figure in your policy accurately reflects your annual turnover before the deduction of expenditure.
• Does my Directors & Officers cover the right people? It should include any trustees or committee members who carry out duties for your organisation.
• Does my Employer’s Liability cover include volunteers? If people are working for you on a voluntary basis, they should be accounted for in your policy.
• Does my policy provide cover in the event of a data breach? This has rightly become a very hot topic in recent years – use this as an opportunity to reaffirm your understanding of your obligations in the event of a data breach and the costs associated with carrying out those responsibilities.
• Is the ‘all-risks’ cover on my policy adequate to cover items taken away from the premises? This could include items such as laptops, iPads and other equipment you or members of your team use to work at home. The limits on your cover can often be increased if you provide your insurer with precise details of the items and their replacement values.
• What new and relevant information should I prepare for my insurer? When renewing your policy, it is important that you advise your insurer of any changes that have occurred since your existing policy was drawn up.
• Has anything happened recently that I think may lead to a future claim? To ensure that you meet the terms and conditions of any policy, you must inform your insurer of any event that could give rise to a claim at the earliest possible opportunity. Not doing this will put your cover at risk.
Morton Michel is the leading insurance provider to the nursery and wider childcare sector in the UK with over 55 years’ experience providing specialist cover. Insurance policies can often seem very similar, but it is worth your time and effort to read all the information you are given thoroughly to help you make a considered decision. That fine-toothed comb approach could make all the difference for your business one day.
Indemnity limits offered by providers do vary, so if you are shopping around, you may want to consider whether the limits are adequate for your business needs and also check with your local authority, as some require you to have more cover than is provided as standard by some policies available in the market.
If you have any questions about the information you’ve just read, or you would simply like to speak to one of the experts at Morton Michel, please contact our friendly team on 020 8603 0900 to discuss further.