Claims Made vs Claims Occurring – a GM guide

You’ll often hear two phrases used when talking about insurance - ‘Claims Occuring’ and ‘Claims Made under Liability’. 

We know that insurance terminology can be confusing, yet it’s so important to understand these, often subtle, differences when assessing your own insurance cover. Welcome to the GM guide to doing just that!

What is a claims occurring basis?

An insurance policy on a claims occurring basis means any claims that occur during the policy period, irrespective of when the claim is made. General liability insurances such as employers’ liability, public liability and product liability would often include a ‘claims occurring’ basis.

What is a claims made basis?

An insurance policy on claims made basis meets claims that are made and reported during the policy period for work undertaken after the Retroactive Date shown in the policy (a retroactive date defines the date at which cover was first provided. At each renewal, the same retroactive date is carried forward).

Claims Made basis is fairly common for professional indemnity related insurance, such as medical malpractice, directors & officers’ liability, trustees indemnity and so on.  It is also used as a cover restriction by insurers in respect of liability arising from high-risk products in order to limit their exposure and for some public and product liability extensions, for instance financial loss.

The requirement of a claims made policy can be onerous upon the insured, and the insurer will usually ask for a no claims declaration at each renewal, stating that after investigation there are no known claims or circumstances that could give rise to a claim that has not been reported, signed by a person authorised to make the statement. 

It’s important to note here that failure to report a claim in the correct policy may lead to it being declined. There is no similar requirement for a no claims declaration for a claims occurring policy, but the policy will contain certain conditions that need to be complied with in order for a claim to be met.

What are the main differences between a claims made and claims occurring basis?

The key differentiator between a claims occurring basis and a claims made basis is the extent of residual cover when a policy is lapsed or cancelled. Neither basis will provide cover for claims that occur after the policy has been lapsed or cancelled, even if arising from work undertaken when insurance was in force.  But, a claims occurring policy will cover claims that have occurred during a period of cover even if the claim is made after the cover has been lapsed or cancelled, whereas a claims made policy will not provide cover for any claims after a policy has been lapsed or cancelled.  This means that on lapsing or cancelling a claims made policy, the historic cover paid for has expired and is worthless. This may seem unfair, but it is the only basis upon which insurance is available for some classes of cover.

If you’d like a little help in understanding either of these types of insurance cover, give one of our team a call today. They’ll help you break down your policy so that you are in charge and know exactly what’s what. Call us on 01392 426799 or drop us a line.

Plant Insurance

If you own or hire a plant to assist in sorting or grading waste, you’ll undoubtedly want to insure it for
losses such as theft, fire and accidental damage. But you might not know that it is also possible to
arrange for a regular inspection, to ensure that you are complying with legislation.


How To Insure Plant and Machinery
You can choose to insure your equipment either on a specified or an unspecified basis. Whichever way
you insure the plant, the insurers will require two sums insured from you:
1) the New Replacement Value (NRV) of your plant; and
2) the Current Market Value (CMV).

The reason that insurers will ask this is that if your machinery is only one or two years old, they may pay
for a loss on a ‘new-for-old’ basis (which essentially means that they’ll ignore any wear and tear on the
item).


Insurers normally settle claims based on the Current Market Value. After a loss has occurred, the
insurers will usually appoint a loss adjuster to make an offer based on the amount needed to replace the
item. Insurers never replace the item themselves; instead they’ll make a payment to cover the financial
loss which is called a ‘policy of indemnity’.


Types of policy available
There are different types of policy available. Commercial Combined Insurance can be arranged which
extends to include Public and Employers Liability, Business Interruption and Property Damage, or
alternatively a standalone plant policy can be arranged.
Care must be taken when arranging plant insurance, because there is a significant difference between a
plant that you own or a plant that you have hired. When identifying each plant item, you’ll need to be
clear about which items are on lease, short- or long-term hire, and which are owned by you. In addition,
it is also possible to insure against claims made against you for loss of hire charges.
You could find that you are liable for the ongoing loss of hire charges because of a loss, i.e., the owners
of the plant lose hire charges up until the point that the insurers agree upon a market value and settle a
claim to them.


Fire Prevention

If you have static plants and machinery, trommels, picking lines, feeders or screeners, insurers will look
very closely at a business’s fire prevention measures. They’ll make sure that there is a written procedure
which is adhered to so that waste debris is not left in or around the machinery when it is not in
operation, which could lead to a fire claim.


Plant items such as shredders can be very difficult and expensive to insure. These items are also very
expensive - sometimes in excess of £250,000 - and most insurers now require that these machines have
automated fire extinguishers fitted. Woodchippers and wood shredders have traditionally been difficult
and expensive to insure, again due to the risk of fire; they ignite more than any other waste recycling
machinery.


It’s a case of good housekeeping - by limiting the chance of fire, you will be able to prove to insurers that
every possible precaution has been taken, and you will be more likely to be able to arrange suitable
cover as a result.


Plant Inspection
Every business operating plant and machinery should have legislation imposed on it in respect of
maintenance and upkeep. Separate insurance cover can be arranged, whereby the insurers appoint
engineers to inspect plant and machinery advising you of any maintenance issues arising from the
inspection.


If you’d like to talk to a plant insurance expert, get in touch with our team today on 01392 426799 or
drop us a line.

The Decline of the Independent Insurance Broker

I don’t know about you, but I often physically put off calling companies for as long as possible. Whether it’s your broadband provider, your bank, or the phone company, the chances are that you'll be put in a queue. 

Then, when you do get through to somebody, your query isn’t something that they can deal with, so they’ll put you back in another queue so that you can speak to their colleague. And, after you’ve listened to the hold music for a good half an hour, your call is then disconnected. 

Sound familiar? 

Maybe we’re being a bit over the top, but the sentiment is there. It seems that fewer and fewer companies put customer service at the very heart of what they do. Which is where GM comes in. 

Our knowledge of insurance is vast, but our team remains small. And whilst that’s a level that we’re happy with, a major reason for keeping our team this size is so that we can be sure that the service provided to our customer is personal. 

When you call GM Insurance, you’ll speak to a person. And we are confident that our colleague will be able to help you straightaway. But if not, with such a small team, the person that you speak to will quickly either transfer you to a colleague or ask them to call you back at a time that’s convenient for you. 

This is important to us. We don’t want our customers to feel like they are ‘just a number’. We don’t want our customers to queue for hours just to speak to somebody about their insurance policy. Our customers choose us for a reason, and we’re happy to report that even if our team grows, we will still, always place customer service at the heart of what we do.

Find out more about the services that we provide and the people who provide them here

🖱 www.gm-insurance.co.uk

📩 sales@gm-insurance.co.uk

📞 01392426799

Why waste?

Waste.

We’re pretty sure that whatever you’re thinking of when you think of that word, it isn’t insurance. 

The waste sector isn’t sexy. It doesn’t excite many people to be honest. But it does us. Why? Because when we started GM, our knowledge of insurance, having spent two decades in the industry ourselves, taught us that there was a gap here and it needed filling, fast, by a company that really knew what it was talking about. 

The waste and recycling sector is vast and contains an equally high number of risks. Not having the correct insurance policy in place, can leave you exposed. 

From property damage due to a skip being moved incorrectly, to hazardous waste leaking into the natural environment, from accidents in plant machinery to employee liability; understanding waste and recycling is a full time job in itself. 

Our company has expanded since then, and we are proud to now have specialist brokers in place to deal with the following sectors of business:

Pretty much, whatever your insurance need, our team can provide. 

Find out more about the services that we provide and the people who provide them here

🖱 www.gm-insurance.co.uk

📩 sales@gm-insurance.co.uk

📞 01392426799

Our Story: GM Insurance

A cold, semi-detached garage might not be the first place that springs to mind when you think of your insurance company, but it’s where we’re proud to say that GM started back in 2004. 

And whilst our company has moved three times since then, we believe it’s important to remember our humble roots! 

Gavin and Lee had been in said garage (with Gavin’s Dad’s carpet offcuts to keep us warm – talk about keeping it real!), for two years when we decided to make the move and rent our first ‘proper’ offices, in Cowick Street, St Thomas, Exeter. This coincided with the recruitment of an extra member of staff, somebody that is still with us now. 

After seven years, we outgrew that and bought our next ‘home’ in Marsh Barton. After another five years, we outgrew that, and bought our current office building across the road, still in Marsh Barton but with a little more space for our growing team. 

Why is this important? 

We believe that what keeps us motivated and determined, is the fact that we are a small team. We have grown organically, and have been together through plenty of ups and downs along the way. Where other brokers have grown through acquisition, we knew that wasn’t the GM way - we’ve grown organically, with a people-focused and client-oriented approach. After all, it’s the people at the heart of our industry that keep us going.

We know our staff. We know what makes them tick, and we do our very best to retain them and to ensure that they want to stick with us. 

We know our insurance providers. We build up relationships with them, and in turn, they know our team too. 

And we know our clients. But most importantly, our clients know us. If they call us, they’ll speak to somebody in our office, in Exeter. There’s no huge call centre, and no monstrous database for us to navigate our way around every time somebody calls. 

With GM you’ve got a loyal, local team who wants to do the very best for you. At the helm are two people who started this journey in a garage - getting cold but, more importantly, getting ever more determined to succeed. We’ll never forget how we started, but we’ll always be grateful for the journey we’ve been on along the way.

Looking for a new insurance provider? Contact GM Insurance here

🖱 www.gm-insurance.co.uk

📩 sales@gm-insurance.co.uk

📞 01392426799

Our Clients: Noon Roberts

Noon Roberts is an established property company based in Exeter, offering property consultancy across the city, as well as Teignbridge, East Devon and the South Hams. 

The company had always worked with a global insurance broker through a regional office and had been happy with the service that they’d received. Until one day they were put through to a call centre,  based hundreds of miles from Devon, and put through to somebody who had no understanding of the existing relationship and insurance policies that they’d taken out.  

The relationship that they’d previously held with the local office seemed to no longer exist, and the policies that had been built up over time seemed unimportant. 

It was at this time that Noon Roberts made enquiries with us here at GM Insurance. Their company was looking for a local organisation who would know the business, the area in which they operate and would work with them to build up a meaningful relationship over time. We provided them with a series of alternative policy quotes, which they were happy with and they are now a very valued client of ours. 

Tony Noon said: “We are a locally owned business, operating across different areas of Devon. It has always been important to me to work with businesses who know us and who ‘get’ what it is that we do and can therefore build a policy around our business needs. 

“Since working with GM Insurance, I’ve been really pleased to speak to a small team of locally based individuals each time I pick up the phone. It’s important to me, and should be important to others, to know that people have a vested interest in making sure that as a customer, you’re satisfied with the service that they provide. I wouldn’t hesitate to recommend GM Insurance to others.”

Ready to make a change with your insurance provider? Contact GM Insurance here

🖱 www.gm-insurance.co.uk

📩 sales@gm-insurance.co.uk

📞 01392426799

Why choose an independent commercial insurance broker?

Sometimes it seems that we talk more to automated systems and computers than to real people, and it feels as though our desire for best value comes at the cost of good service. 

GM Insurance, based in Exeter, Devon, does things differently. 

Rather than working with companies that have usually been bought out by national, and sometimes international, brokers, and who tend to work with the same, select group of insurers that they commit to providing business with, in exchange for financial incentives, we work with companies that we’ve spent the last ten years building up relationships with. And in those brokerages, it’s the human interaction that we value most. We can tell you the names of the people that we talk to at these firms, and the people who we work with daily in order to provide the best deals for our customers. 

Not only that, but our customers can also expect to deal with human beings when they call us! Our reputation is built on providing our clients with personalised knowledge and advice. Ring us, and we’ll put you through to your personal broker who will work on your behalf time and time again to secure the best deal and the best policy for you. 

With GM Insurance, our independence is key. It’s what drives us and what ensures that our customers come back for more. If you think it’s time to put your faith and custom into a local business, that has your best needs at its core, and will give fair and unbiased advice, give us a call today.

Need to chat about your insurance needs? Get in touch with GM Insurance here

🖱 www.gm-insurance.co.uk 

📩 sales@gm-insurance.co.uk

📞 01392426799

HGV Insurance for Younger Drivers

You can’t have failed to notice that there is an increasing number of driver shortages, and as a result, companies are struggling to fulfil delivery times for products, which of course all has a knock-on effect on us, the consumer.

So it makes sense therefore, that HGV driving is being seen increasingly as a positive career choice for younger people. 

But finding insurance for those younger drivers can be hugely challenging, and many businesses are struggling to do so. Insurance premiums can be extortionate and haulage companies often spend endless hours searching for appropriate cover. 

Since GM Insurance was established in 2014, we’ve built up reputable relationships with insurers who will consider and sometimes even prioritise, younger drivers. It's these excellent links and relationships that make the difference to our customers. Why spend hours scouring the internet for appropriate policies, when you could just come to us, and we’ll do it on your behalf? We know who to go to – these are long lasting relationships that are built on trust, and that we’ve worked hard at maintaining over the past eight years. 

With so many insurers moving away from a customer focussed business model, GM Insurance really stands out from the crowd. We know that human interaction is important, and we strive to build up relationships with our clients that stand the test of time. If you’d like to talk to a human being about your insurance policies, give us a call today.

Need to chat about your insurance needs? Get in touch with GM Insurance here

🖱 www.gm-insurance.co.uk 

📩 sales@gm-insurance.co.uk

📞 01392426799

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Jay's Aim Blog

Since 2018, GM Insurance has supported the work of Jay’s Aim, a local charity that means so much to us and to so many people in the region. Founded in 2018, it was established with the target of reducing the rate of sudden cardiac death among young people, and was set up in memory of Jay, a 28-year-old from Exeter who died suddenly from cardiac arrest at the age of 28.

Over to Lee Galan, our company director at GM Insurance:

“I grew up in the same town with Jay and his siblings and were lifelong friends. For such a shocking event to happen to someone, and for them to lose their life so suddenly at just 28 years old, is something you never think will really happen to people you know. I was of course devastated, but to see how it affected Jay’s family was truly upsetting.”

Jay died in 2017 and since then, his family and fiancé have formed Jay’s Aim, a charity that installs vital lifesaving equipment that can genuinely make the difference between life and death.

We championed Jay’s Aim for the 2021 Aviva Broker Community Fund, and we were thrilled when they awarded Jay’s Aim with £20,000 of funding. This funding will allow Jay’s Aim to install and distribute vital ICD equipment across the South West, and to help raise awareness of hidden heart problems in young people. If we can help to save the life of one person, we’ll know that our input will have been worth it.

GM Insurance is committed to doing all we can to help Jay’s Aim, so watch this space for more updates throughout the year.