BIBA warns about cutting insurance corners
Thu, 02 Jul 2009
Now is not the right time to cut corners on insurance cover, according to the British Insurance Brokers' Association (BIBA).
Steve Foulsham, technical services manager at BIBA, said businesses and consumers may consider reducing their cover because money is a bit tight, but this can lead to even greater financial worries further along the line if a claim is needed.
He said there was a particular risk of small companies reducing insurance cover, but ultimately individuals have to asses their own level of risk.
Mr Foulsham commented: "A discussion on your own circumstances is the right way forward and then, by all means, check the market.
"It's all about it [being an] informed choice. As long as you know what the choices are, then for your own personal circumstances you can decide upon that."
Last month, research conducted by Scottish Widows indicated that too few small businesses have taken action to insure themselves against the unexpected loss of a key employee.
The firm claimed that 81 per cent of firms are dependent on a worker whose loss would seriously impact the profitability or survival of the business.
However, it reported that just 33 per cent of companies have taken out insurance on this individual.
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