Howden Insurance – Advice

Howden Insurance

As a member of the Association of Heritage Engineers (AOHE), the Howden team are
here to provide you with advice and guidance on your insurance and risk management.
The Howden Classic Motor Trade team has a real passion for helping people who collect
and work with classic and historic vehicles. With decades of experience in the classic motor
sector, we know a thing or two about the risks involved.
Our team also love to attend classic motor events around the country, including recent
events at Bicester Heritage with the AOHE.

One of the ways we are supporting the sector, is through the Business Recovery Toolkit
resource, free for Howden clients and AOHE members to access.
We’ve created a Business Recovery toolkit, identifying five key steps to recovery:
 Communication
 Safety
 Financial support
 Returning to work
 Adapting to new situations

Access the Howden Business Recovery toolkit  HERE .

Howden are proud to support the Association of Heritage Engineers and their members.
As a client, we can offer you:
 A bespoke product to suit your business requirements or private collection
 Interest-free instalments to spread the cost to your business
 Free risk management services to support you and your business

Call us today on 01252 377 546 or request a call back from our Classic Motor Trade team
for a complimentary review of your insurance and requirements.
Dominic Taylor-Lane, M.D. of the Association of Heritage Engineers said:
“It is always challenging for fledgling organisations to convince companies to support them,
but following a conversation with Tim Phelps at the London Classic Car Show, he got what
the Association of Heritage Engineers is trying to do and the enthusiasm and support from
Aston Lark has been nothing short of amazing.  I look forward to what we can achieve moving forward working with our members and member companies.”

How heritage sector businesses can avoid underinsurance

What is underinsurance?
Underinsurance occurs when the sums insured are no longer sufficient to cover your
business or personal interests.
There could be several reasons for this, the most common being:
 Additional storage facilities
 Increase in the number/value of classic vehicles in your possession
 Purchase of extra equipment or tools
If your insurance is insufficient then any claim will not be paid in full. For example, if the cost
to rebuild or replace your premises and/or its contents is £500,000 but you are insured for
only £250,000 then you would effectively be underinsured by £250,000 or 50%.

Is this really a problem?
Yes, most definitely!
According to Aviva*, out of 177 cases, Aviva’s own risk management surveyors found that
commercial customers had underinsured their businesses by an average of £486,000 each.
As a member of the Association of Heritage Engineers (AOHE), the Howden team are
here to provide you with advice and guidance on your insurance and to assist you with
understanding where you may be uninsured.

What are the main underinsurance issues facing those in the heritage sector and
classic motor traders?
There are several areas of underinsurance that businesses who work with classic vehicles
and the wider heritage sector could face. Two of the most likely are insufficient buildings
cover and an inadequate indemnity period for business interruption cover.
A classic motor trader had a fire at their premises and lost everything. When they took out
their insurance, they had decided that they could recover from a serious fire within 12
months and had taken out business interruption insurance to cover them for loss of income
only for that period.
Unfortunately, the buildings sum insured was inadequate meaning that they had to fund part
of the rebuild themselves. Also, because of the extent of the damage and their location, they
had to reapply for planning permission. The time taken to achieve the clearance of the site,
engage architects, agree plans, obtain permissions, arrange builders, have the new building
constructed, then purchase replacement tools and equipment meant they significantly
exceeded their original 12 months estimate. This resulted in the business being left with no
income for many months.

How do you know you are underinsured?
If you answer ‘yes’ to any of the below, you should consider having your insurance policy
 You have not reviewed your sums insured for a couple of years
 You have made alterations/additions to your workshop, garage or storage unit(s)
 You have purchased extra tools/equipment
 You have more customer’s vehicles in your care than when you took out cover
 You have finished a restoration project, which has increased the value of the vehicle
 Your buildings insurance is based on market value instead of rebuild cost
 You only have a 12 months indemnity period (that’s 12 months from the date of the
incident) on your business interruption cover, or no cover at all
Call us today on 01252 377 546 or request a call back from our Classic Motor Trade team
for a review of your insurance and requirements.
This article is part of Howden #UnderinsuranceExplained campaign – helping our clients
understand how they can reduce the risk to their business and personal interests.