In the days before Insurance Broker regulation, some rather (okay...very!) shady practices prevailed! In Aberdeen, I've seen equally shady during the past 4 weeks!
One Broker literally put a made up premium in front of our client, clearly not backed by any Underwriter support. They obtained a mandate to take over this client mid-term - until we pointed out their false promise.
This week another client received an equally enticing deal, this time backed by an Insurer's quotation. However if we had provided a £750k turnover projection instead of the actual £2m and understated the equipment, we too would have struck a cheaper deal.
The message today is that if an Insurance deal looks too good to be true, make sure you check the devil in the detail... A good deal on your Insurance may only present itself as a bad one when your claim for thousands or millions is knocked back....
A Broker desperate to win your business is likely to be equally desperate to hit a sales target.
Best advice is to scrutinise the offer - not merely taking it at face value. Insurance isn't an exciting topic, I will readily admit! However you (or a Broker) getting it so wrong could have dramatic consequences for your business.
Replies