Not all combined policies are built the same

Written by Nikki Hookway, Commercial Manager 

Have you ever stood in the supermarket or chemist, staring at the  many different shampoo and conditioner bottles, wondering what it all means? Surely, the main result you want is clean hair. But instead, you’re met with various colours, brands, oils, and minerals all claiming they can transform your barnet into ‘The Rachel’ (the most-requested  hairstyle in the 90’s which  has followed Jennifer Aniston ever since, despite numerous hairstyle changes).

Back in the shop, you lean closer, reading all the details on the very small print, only to realise that the brand you’ve been buying for years is designed to make your already thick and curly hair…thicker. It’s at this point, you realise you’ve actually been wearing ‘The Monica’ (if you know, you know).

 And this is also that lightbulb moment where you understand how important it is to read the finer details to achieve  your desired ‘Friends’ hair outcome. And by doing so, you alter your buying habit for the better forever more.  

But what has shampoo got to do with insurance?

There are characteristics that vary between brands and products, which ultimately affect the outcome in much the same way as your hair products. This is particularly true for commercial combined insurance products, as this is where your policy becomes much more specific.

Just think, a business carrying metal fabrication will require a commercial combined policy much in the same way a cosmetic wholesaler does – but their covers should differ considerably just as their risk does.

What are some of the main factors that can vary from policy to policy? 

• Your business performs lots of overnight processes, which may need to be unattended. If you’re reliant on automation this is typically excluded, unless specifically endorsed
• Your business sells seasonal products such as Christmas cards or sunglasses – you may require  stock increases only at certain times to keep up with demand around peak trading times of the year
• Your business is a manufacturer – a change in customer behaviour means you are now responsible for the delivery of your goods,  so it would be useful for your business to include a “goods in transit” section
• You’re a metal or timber merchant who keeps stock outside of your building – it’s important to know such stock is insured against theft, as this would be generally excluded
• You have one access route into your business – if the road closes, this could potentially affect and disrupt your business at a massive cost to you. Business interruption cover can offer various extensions of cover to this effect
• Your business carries out heat work – if not disclosed, this could alter not only the premium but also the terms and conditions of the policy 

What can your broker do to help?

Just as you’d expect your hairdresser to advise on the best treatment and products for your hair, your broker will do the same for your business and so much more. Brokers are not just therefore the product buying, but also to support and advise on risk management, claims and servicing. 

If you have a combined product which has been arranged for you and your business, it’s important that you read the finer details of the policy to ensure that it fits the nature of your business. Speak to your broker openly and often about any concerns you may have. Better still, many brokers will visit your premises and help transfer this into a suitable insurance policy. 

Because nobody wants to be stuck with the ‘Monica’ hairstyle equivalent of a combined insurance policy, do they?