How a £500 excess can turn into a £6,000 excess
We regularly have up to a thirty cars parked up at our premises. A couple of weeks ago, someone vandalised one of our cars. The good news is that only one vehicle was damaged before a neighbour alerted the police. But the incident has prompted us to ask about how the £500 policy excess under our fleet policy would apply if several vehicles were to be vandalised in the same incident. Would there be just the one excess applied to the claim as a whole or would an excess be applied to each vehicle damaged?
It is industry standard that fleet policies are worded in such a way the excess will be applied to the loss or damage relating to each vehicle involved in the same event. So if say a dozen of your vehicles were vandalised in the course of the same incident, a £500 excess would be apply to each of the vehicles damaged in the attack meaning in total, £6,000 would be deducted from your claim.
Got an employment issue? Take advice before taking action
A few weeks ago we dismissed an employee for misconduct. We thought that was the end of the matter, only to find the person concerned is now claiming unfair dismissal. At the point when we received notice of an Employment Tribunal, we notified our commercial legal expenses insurer, only to have them turn round to us and say our claim for legal expenses relating to representation at the employment tribunal and any compensation award that may result has been rejected because we failed to contact their helpline and seek advice before taking action against our employee. Is this normal insurance practice?
Commercial legal expenses insurance policies that provide cover relating to employment disputes do almost invariably require policyholders to phone their helpline before taking any action against an employee - and to follow the advice they are given. The rationale behind this is perhaps understandable - with employment law being so complex these days, if premiums are to remain at affordable levels, insurers do need to build into their policy wordings a degree of protection for themselves against the risk of what they would consider to be claims that can be easily avoided by following the correct procedures.
Need some help?
If you have any specific concerns or issues about matters raised in this edition of Risk Update, or about any other insurance-related matter affecting your business, please talk to your usual Towergate Insurance contact - or get in touch with us by phone, e-mail or post using the contact information provided below.
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