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Insurance companies have always been a tricky bunch, and because they are called upon relatively rarely they frequently get away with it. With the economy and the job market in the state they are in at the moment it's unsurprising that some of the payment protection plans are being put under scrutiny only to produce some unpleasant surprises.

It is worthwhile checking the small print of any protection plans that you have to see what conditions have to be met before you can claim. We've had a rash of contractors recently whose insurance companies have refused to pay out because of the nature of the way they work.

Contractors always suffer when it comes down to financial services, as the unpredictability of their work creates a problem for the banks and companies supplying them. It appears now that even once you find a company willing to accept the way you work, the protection they offer you is worthless because it doesn't cater to contractors. This is to their advantage, it's money for old rope (as was the case for practically all payment protection prior to the crunch), but it does leave you in a tough position.

After seeking guidance from an impartial source in the insurance industry we have this advice:

Before taking out a policy

- tell the truth, if you lie it might cost you less now but the policy itself won't be worth the paper it's written on
- make sure they understand the way you work
- read the small print

When making a claim

- don't take their word for the reason of refusal, it's rarely as cut and dried as they make out
- be persistant, if you don't chase them they will consider the matter closed
- ask to speak to someone higher up
- make a fuss
- and finally if all else fails talk about taking it to the press, because the last thing an insurer wants is the bad press of not paying out.

Well it's sunny and time for a long weekend, have a great 3 days off.

Hugo
22/05/2009