Insurance, Are You Compliant or Complacent?
Could you fall foul of not having a claim paid due to complacency? If you are running a business it is vital you keep to the rules and regulation set out in your policy if not, your business could suffer greatly should a claim be made.
Understand your policies and what is expected of you and your business.
First and foremost, you need to understand what you are responsible for when it comes to ensuring you are compliant with your insurance policy. To do this you will need to understand the risks your business faces and how your insurance protects you against those risks.
There will more than likely be negating factors or stipulations to follow sitting in your policy documents, which will affect your ability to claim should you not be following them. An example of this could be, maintaining suitable network security that protects private and confidential data. If adequate security features are not in place and you lose customer data due to a cyber-attack or negligence you may not be entitled to financial support from your insurer should a claim be made against you.
Keep records correct and up to date.
Keep a log of conversations, progress, advice and actions taken with your clients. Consider it good housekeeping of your business transactions. By keeping a clear record of your actions with your client you will be able to provide evidence which can help support you in a legal process.
Keep employees informed too.
If you have any employees they will have a part to play in your compliancy, which ultimately as a business owner you would be liable for. For you to be able to follow the regulations or stipulations set out in your insurance agreements you need to make sure anyone you employ has an understanding and awareness of what needs to be followed.
Maintain your Duty of Care
If you run a business which provides treatments to clients such as a beauty salon, hairstylist or indeed if you provide any medical or nutritional advice you must all ways ensure you follow the correct procedure to maintain client health and well-being. Even if that means losing their business. For example, if you are required to perform a patch test prior to hair treatments and your client refuses this you are liable for any of the adverse effects, even if your client signs a waiver form. In the case of a patch test, it is very much there to protect you, as well as the client.
Speak to the right people first.
In the event a claim is made against you or should you need to make a claim; you should speak to your insurance company or adviser first. They can then advise you of the correct procedure to follow to ensure you can maintain your status to make a claim. You do not want to accidentally do anything that will jeopardise your claim support.
It is vital you remain compliant when it comes to your insurance, if you don’t it could be devastating for your business should you ever need the support from your insurance policies. Always remain compliant never complacent.