As the Care sector continues to face multiple challenges resulting from the pandemic, it is important that you ensure that you remain correctly insured. With this in mind, a common issue we've seen arising for our clients relates to borrowing plans/refinancing, which can significantly impact an insurance policy.
Be it high street lenders or bespoke funding avenues, it's highly advisable to speak with your insurance broker before signing in to any new contracts, because these may expose your business to uncovered risks.
In particular, whilst lending contracts may be standardised, they can contain clauses that may result in misaligned insurance contracts, as some lenders’ contract clauses are not ‘insurer friendly’. For example 95% of all care insurers do not agree to the “Non-Invalidation” clause, meaning separate or new policies would be required. Not only can this be expensive, but it will limit a client’s insurer options at renewal tender.
What should you do next? If you are in this position and planning to borrow, please have your insurance broker review the lender contracts before they are entered into, so they can advise you what to watch out for.
If you are a Quality Care Group client, your dedicated account handler will happily do this for you.
Furthermore, if you are seeking finance, we can help you find a lending solution through our preferred partners that is tailored to your needs and we can work with you from the outset to ensure your lending and insurance contracts are aligned.
To find out more please email Business Solutions by clicking here