1

An introduction to insurance

8 ways to save you money and reduce your risk

2

Agenda

• Tennyson Insurance

• Research

• 8 ways to save you money and reduce your risk

• How you might go about it

• Q & A

3

Tennyson Insurance

A commercial insurance company

• Founded 2008

• Seeking to innovate & take a fresh approach

• Work across the UK from base in Chichester

Sector specialists

• Small and mid-sized UK charities

Work with Zurich as underwriters

• Expert and solid

• Keep it simple, build expertise

4

Research

Who did we speak to?

• 1000+ customers

• Hundreds more Insurance Health Checks

• Organisations with incomes ranging from £1,000 to £30,000,000 p.a.

What did we find?

• Approx 35% had optimal, or close to, policies

• 65% could make significant improvements in cover or value for money

• In these a clear pattern emerged – 8 ways to save money and reduce risk

Why can 2/3 policies be improved?

• Perceived as unimportant?

• Too much jargon?

• Interested to know your views........

5

Eight ways to save you money and reduce your risk

1. Who is new to their role?

• Has cover been reviewed in the last 3 years?

• Tempted to assume that everything is correct and up to date?

• Our experience suggest that it may not be

• And premium rates may have changed significantly

2. Who has Public Liability Cover?

• The vast majority do

• But some don’t (or perhaps have Professional Indemnity cover ‘instead’)

• It’s a necessity

3. Who has updated their ‘sums insured’ in the last 3 years?

• Index linking is common

• But, has nothing changed or been purchased in that time?

• Paying too much, or having too little cover, is common

6

Eight ways to save you money and reduce your risk

4. Who has Business Interruption cover?

• Quite common, protects income in the event of a crisis

• But most policies do not cover grant funding or donations, typically only trading

• Do you have a significant trading income? If not, scrap this cover (or reduce it) and save money

5. Who is based in an office?

• Contents cover will pay for new equipment in the event of flood, fire etc

• But who will pay if you have to move into temporary accommodation?

• Consider ‘Business Interruption – Additional Expenses’

6. Who has Professional Indemnity cover?

• Do you charge for your advice? Or give financial advice?

• If not, you may not need it – certain policies will cover you under Public Liability

7

Eight ways to save you money and reduce your risk

7. Who has, or is under pressure to get, Trustee Indemnity Insurance?

• Lots of fear, but little clarity in the market

• The detail can be complex but the risk is small

• What causes most fear – a huge liability claim – should be covered by Public Liability

• Pay attention to finances, be conscientious and you have little to fear

• Consider a CTN policy?

8. Would you claim in the event of losing £100, £250, or even a laptop?

• If not, and many wouldn’t, review the excesses in your policy

• Raising could save significant money

8

How you might go about it

Invest a little bit of your time

• Easy to for it to be lost amongst all your other tasks

• Worth 1 day per year of your undivided attention

Contact potential suppliers

• They should ask about your organisation, what you do and your income profile

• The conversation should be conducted in plain English

• And the output should include a lot of common sense

• (Although the policy wording itself is necessarily detailed)

Review, refine and purchase

• Perhaps ‘sense check’ with a colleague

• Purchase, and enjoy the feeling of a job well done

9

Questions

10

7. Who has, or is under pressure to get, Trustee Indemnity Insurance?

• Lots of fear, but little clarity, in the market

• The detail can be complex but the risk is small

• What causes most fear – a huge liability claim – should be covered by Public Liability

• Pay attention to finances, be conscientious and you have little to fear

• Consider a CTN policy?

8. Would you claim in the event of losing £100, £250, or even a laptop?

• If not, and many wouldn’t, review the excesses in your policy

• Raising could save significant money