Insuring a business assets - chip timing business

[lost in espace]

I have started a chip timing business for running events. The chips we use are reusable and are worth a fiver each, and we have to leave them with the running event organisers for about a week to sort them into the runners packs. The total a value is about £5k. Running clubs won't want to take on the risk of losing them, and I was thinking about charging an insurance cost for each event apportioned amongst the premium.

For this period we need to insure them against theft or loss, is this actually possible? We have some other assets too we would like to insure, including our mats and decoders that are worth about £5k.

Anyone deal in insurance and can help?

[insurance_jon]

you can insure anything. It's just finding a cost effective way to do it.

have you tried adding it to you business insurance i.e your liabilities etc?

[lost in espace]

insurance_jon said:

you can insure anything. It's just finding a cost effective way to do it.

have you tried adding it to you business insurance i.e your liabilities etc?

Thanks Jon, we are a new business and don't have any insurance at all in place crazy as it sounds!

[insurance_jon]

Everybody thinks of it last for some reason;)

The problem you have is £5k of stuff on hire would attract premiums disproportionate to the sum insured i.e £250-£350 plus tax due to minimum premiums

The other problem you have is to "sell" insurance you have to have fca authorisation

[Robbo 27]

I dont think that this is an insurable proposition to be honest.

What is the business model, do you charge the organisers for the supply of the chips?

Would it work if the runner was to be charged a deposit £5-10 which is refundable on return of the chip?

Never having run for anything other than a bus I am bit in the dark. Presume that the runners are given a numbered vest, which is returned to the organisers, could the chip be secured into the vest?

By the way, if you are a business the minimum insurance cover that you must have is Employers Liability, there are certain businesses that are exempt including families but suggest you get some advice from a local insurance broker, try a visit rather than a call, in my experience you get better service.

Edited by Robbo 27 on Wednesday 9th March 10:57

[eliot]

My wife was issued with an almost paper like bracelet for her ankle which presumably had a rfid chip in it. Didn't need to return it after.
This was for a half marathon, so no need for super accuracy.

[lost in espace]

Thanks all. Our chips are attached to the shoe and recovered at the end of the race to be reused over and over. The paper chips your wife had are disposable/one use. We don't charge for chip use as such, and disposable chips are £1 each.

I guess we will have to self insure, a few usually go missing after each race its just a running club losing the lot that we are worried about. My house insurance had a £2k business cover option, maybe I can look at that again.

[insurance_jon]

it wont cover items out on hire. just ones in your control

[lost in espace]

insurance_jon said:

it wont cover items out on hire. just ones in your control

Thanks, yes seems we will have to suck up any big losses. It is in the interest of the race organisers to keep the chips safe, or their race can't go ahead!

[insurance_jon]

I think your best bet is to get a watertight terms and conditions with a charge for unreturned chips

[boyse7en]

lost in espace said:

Thanks, yes seems we will have to suck up any big losses. It is in the interest of the race organisers to keep the chips safe, or their race can't go ahead!

Do you not get a deposit from the organisers to cover some or all of the cost of chips should they not return them?

You will always lose some chips, as runners who drop out along the way (especially half or full marathons) are extremely unlikely to return to the finish line to drop your chip off. They won't even think f it until they get home to take their shoes off.

[trickywoo]

Do you have any existing insurance?

IMO you should have public liability as a minimum and if you are employing anyone you need employers liability.

Your existing insurer will give you an idea of what the cost would be.

[lost in espace]

trickywoo said:

Do you have any existing insurance?

IMO you should have public liability as a minimum and if you are employing anyone you need employers liability.

Your existing insurer will give you an idea of what the cost would be.

No no insurance at all, I will speak to my partners. We don't employ anyone, just 3 partners.

[anonymous-user]

Surely the easy way is to charge the organisers for any losses?

So when they pay for the event, build in a "deposit".

You will know which chips are missing and they can tie that to the entrant should they wish to pursue the matter?


You can then insure the goods whilst under your control should you wish.

[lost in espace]

desolate said:

Surely the easy way is to charge the organisers for any losses?

So when they pay for the event, build in a "deposit".

You will know which chips are missing and they can tie that to the entrant should they wish to pursue the matter?


You can then insure the goods whilst under your control should you wish.

Thanks, that is exactly what we do. Its just if they all get lost when the race organisers have them that is the worry, losing £5k of chips in one go. It is pretty unlikely though self insuring is the only way forwards.

[anonymous-user]

lost in espace said:

Thanks, that is exactly what we do. Its just if they all get lost when the race organisers have them that is the worry, losing £5k of chips in one go. It is pretty unlikely though self insuring is the only way forwards.

I would imagine the organisers would find it easier to get cover for this as they will probably be buying other covers for their event. Push the responsibility onto them in the contract