Ben built his construction company from the ground up after years of working gruelling jobs. Finally, being his own boss and growing a successful business was a dream come true.
Ben’s company had a stellar safety record, a family of loyal employees and happy customers. Ben’s business was up for a National Construction Award later in the month and he was looking forward to getting his dinner jacket on.
When it was time to renew his business insurances, Ben merely glanced at the Statement of Fact document from his Insurance Broker and approved it without review. He was too busy with projects and trusted it was all in order. This proved to be a grave mistake.
A few months later, an electrical fire broke out at a customer's site when an operative improperly installed some wiring. Fortunately, the fire damage was isolated and dealt with quickly by firefighters. When Ben submitted an insurance claim however, he was shocked to find it was declined and his policy voided. It turns out two key answers on the Statement of Fact had been inaccurate.
The lack of insurance cover put extreme financial strain on Ben's business. They managed to stay afloat, but only by taking out crushing loans and a personal guarantee. Morale and local reputation also took a hit.
When Ben applied for new insurance policies, he had to declare the denied claim, as well as having his previous business insurance policy voided. Most insurers balked at taking on such a risk and Ben faced sky-high premiums well beyond his means.
His dream business now faced the spectre of company liquidation and personal bankruptcy, all because of overlooking that fateful document. Ben learned the hard way that success requires regularly reviewing the fine print that keeps your company safe. He resolved to never let a paperwork oversight threaten all he built ever again.
Don’t let Ben’s unfortunate circumstances affect your livelihood, review your Statement of Fact document with your Insurance Broker.