Why It’s Time To Check Your Insurance Policy (even when your insurer is Hiscox)
Hiscox are a popular UK insurance provider, and it’s easy to see why. They offer high-quality policies across the board, and here at Risk Box, we’ve worked closely alongside them to protect hundreds of agencies over the years.
We are fans.
So why, then, are we publishing a piece urging readers to check their policies, even when they are insured with Hiscox?
Simple. It’s just good practice.
What we are saying is equally true for any insurer, however, in the media and tech sector, Hiscox are a dominant force.
As good as they are, there’s still a realistic chance your current insurance deal might not actually be the best option for you right now, and that is unlikely to be the fault of the insurer
We’re not saying this means you should move from Hiscox – far from it. It is often just a case of making key changes to your current Hiscox insurance instead.
What we are saying is that you need to regularly review and re-engineer your insurance protection – and Risk Box are here to help you do just that.
What Could Be Wrong With My Policy?
Getting the right insurance is so much more than ticking those basic boxes. It’s simply not enough to select your Professional Indemnity limit and ignore the detail.
Insurance varies – and not all policies are created equal.
Over the last twelve months we have worked with agencies who have encountered a variety of issues. Below are three genuine examples of clients Risk Box have helped.
The Out of Date Policy
Established over ten years, this successful branding and campaign agency worked for some household names. Insured with Hiscox through a local broker for most of this time, they were always told that what they had would protect them.
This was not the case.
Making a mistake in delivering a time critical campaign, the brand were exposed to their first breach of contract litigation. To make things worse, this was their largest client, and the contract was high value.
The issue for the agency was that the Hiscox policy held was several years out of date. It didn’t include breach of contract cover – leaving them unprotected.
The agency is still insured with Hiscox, but is now advised by Risk Box, with the right cover (including breach of contract) in place, at no additional cost.
The Expensive Policy
A start-up agency purchased a small package policy with Hiscox online half a dozen years ago. It provided basic cover at an affordable price.
Fast forward to 2018 and the startup is now a fully-established web design business with a strong reputation – delivering large and complicated projects. Turnover has increased each year…and so has the insurance.
The agency avoided using a broker as the premium was expensive enough. There is no way they wanted to pay for additional services on top – as that wouldn’t make any financial sense.
The irony was the agency was paying way over the odds for their cover.
This only came to light when the agency was acquired by a much bigger company who were paying less for the same cover and insurer.
The acquiring agency had worked with Risk Box for years – and we’d been ensuring their cover was both correct and competitively priced.
The Incorrect Policy
In one instance, there was a digital agency that used to purchase services online – insurance included. When buying, they opted for the Hiscox quote from a well-known business comparison site.
It was cheap, had a clear limit included in the contract, and arrived accompanied by Hiscox’s decent reputation. All looked great on the surface.
The trouble is… insurance varies.
The agency had taken out a policy with several deficiencies.
There were a series of smaller flaws, including high excess and the aggregated limit…but then there were very serious mistakes.
For example, this agency dealt with some large US clients who required them to sign US jurisdiction contracts.
This was excluded.
The agency also pivoted a couple of years previously, providing app development services. Having not checked the fine print in their original submission with the aggregator, they didn’t realise these activities were entirely excluded.
Again, they were left exposed.
With 24 hours’ notice, Risk Box were able to re-engineer this agency’s cover, and put them on a suitable product with the right insurance.
This turned out to be vital. Just weeks later, the agency suffered a devastating loss that could have put them out of business if it wasn’t for the amended policy.
Get the free Risk Box Guide To Re-Engineering Your Agency Insurance
In summary, agencies need to remain vigilant with their insurance, guaranteeing they are properly protected and not paying unnecessary premiums.
That’s where we can help.
Risk Box are to release a “Guide to Re-Engineering your Agency Insurance” next month which will outline:
– Common cover deficiencies to look out for
- Options available to plug those important gaps
– Matching your insurance against your activities
– Being sure you are paying a fair premium
To request your free digital copy please complete the below
Alternatively, if you would like personal help re-engineering your current agency insurance, either with Hiscox or someone else, then please mention this in your email and we will happily arrange a Zoom meeting.