5 Things you might miss in the fine print!
Whenever you sign up for something, the fine print is something you should rarely skip over. When it comes to insurance, this is especially true, as it’s easy to overlook details that you can fall victim to down the line.
Reading the fine print ensures that you’re eliminating any possibility of issues in the future. Here, we shares five things you might miss in the fine print when getting insured:
1) M&D / Cancellation terms
Cancellation terms can vary widely depending on the type of policy and the insurer providing the cover, so it’s always worth knowing whether you can leave the contract early, and how much it would cost. Pro-Rata simply means that you get back the premium for the days cover that you haven’t used, while Minimum & Deposit (M&D) refers to a set amount of the premium which will be retained by insurers, irrespective of when the policy is cancelled.
2) Geographical/Territorial Limits
There are two different types of limits on a policy, in addition to the standard monetary limit. These are known as Jurisdictional and Territorial limits. Territorial Limit refers to the place where the act, error or omission occurs, why Jurisdiction Limit refers to the fact that the policy will only cover claims brought within the court system of the nominated countries. An example would be company ABC Limited, who are based in the UK but provide their services across the globe. If their policy provided a territorial limit of ‘Worldwide, excluding USA/Canada’ then the company would have no cover for any errors or omissions that took place in the US.
Excess refers to the initial monetary value that the customer is responsible for in the event of a claim. In other words, this is the amount that an insurer would ask you to contribute towards the claim if one is made. Excesses are sometimes otherwise referred to as; retention, deductible, or contribution. Each section of an insurance policy will have its own excess, although it’s worth checking the fine print for an ‘increased excess endorsement’ – whereby the excess is increased from the normal value, shown on the documents.
An insurance endorsement is an amendment or addition to the standard insurance contract, which remains in force for the duration of the policy. Endorsements can be used to note additional persons onto a policy or to extend cover, but they can also be used to reduce the amount of coverage under a policy by limiting certain losses or imposing higher excesses under certain sections. Applicable endorsements should be clearly highlighted on the schedule of cover.
Insurance conditions are requirements that need to be met for the coverage to be valid. They may address issues like how notice of a claim should be given and what the insured party should do in the event of a loss. Conditions are typically clearly highlighted in a specific section of your policy schedule.
We’re a bit of a stickler for the fine print, so we’ll always try and highlight the important bits when you buy a policy with us. You should always ask if you are unsure of anything we have highlighted, as sometimes it can be the difference between a claim being paid and not.
Thanks for reading!