It can be hard to know where to begin when thinking about insurance options. With so many insurance companies offering a plethora of choices, lots of individuals, companies and businesses are looking for an alternative. Lloyd’s are renowned as the World’s Specialist Insurance Market; they offer a different route when thinking about risks to your business. They work completely differently to insurance companies.
Dating back to the 17th century, Lloyd’s started in a coffee shop in London, where ship owners and merchants would meet to discuss marine risks and ways of insuring against them. They agreed to share the risks that affected them all including losing goods and cargo, ship damage and other related issues. This meant that no individual would have to suffer alone from any accident or disaster. Outsiders started to support their way of dealing with risks together, which was known as ‘underwriting’. The idea of underwriters all taking shares of the same risk became known as a ‘subscription market’.
Nowadays, Lloyd’s is the world’s leading specialist insurance market and deals with businesses worldwide. It still remains loyal to its origins with marine insurance, as well as other types of insurance including aviation and reinsurance. Its market is made up of individual and corporate members that are in contact with specialist underwriters. These underwriters are responsible for prices within the market and subsequent claims. Those that want to join the market must first talk to a broker and discuss their risk needs. The broker will then facilitate the process of risk transfer between the underwriters and clients.
Risks are relevant to any business and the term can refer to many possibilities. From the damage of goods to a fire in the workplace, it is vital for employers to understand and protect against the risks that could affect their companies. With many businesses liable to suffer from the same risks, the idea of an insurance market is very beneficial. Insurance can be tailored to meet the specific problems that could put your company, and similar companies, in danger.
Lloyd’s is made up of two parts: the market and the Corporation of Lloyd’s, which oversees the market. They both work to maintain the high standards of performance that make up Lloyd’s prestigious reputation. More information about what Lloyd’s can do for you and your business can be found on their website, http://www.lloyds.com/, which also has helpful links to brokers and managing agents.
